The government should stop permitting tobacco companies to subtract advertising expenses from their revenues in calculating taxable income. Tobacco companies would then have to pay more taxes. As a consequence, they would raise the prices of their products and this price increase would raise the prices of their products and this price increase would discourage tobacco use.
Which of the following is an additional premise required by the argument above?

Question

Examsnet · Accepted Answer

Correct Answer is :  Tobacco companies would not offset the payment of extra taxes by reducing costs in other areas.

GMAT Verbal Reasoning Practice Test 3