Hi LulaBrazilia,

This CR question is an example of a "conversation" prompt. In these situations, it's important to be clear on what the two people agree on and disagree on.

Sonya's logic:
-The government of Copeland is raising the tax on cigarettes
-Even with the tax, the price of cigarettes will still be reasonably low, so consumption probably won't change much
-The government will see INCREASED REVENUE from the tax.

Raoul's logic:
-Cigratte prices will still not be high, so smoking is unlikely to decrease.
-Cigarette prices will NOT be the lowest in the region.
-There might be substantial ILLEGAL SALES of smuggled cigarettes in Copeland.

Agree:
-Tax isn't enough to affect consumption
-Cigarette price will still be relatively low

Disagree:
-Government will see revenue increase from tax.
-Illegal sales of cigarettes could be substantial.

Sonya's entire argument works IF cigarettes are purchased LEGALLY (then they'll be taxed and the government will have revenue). Raoul points out that her argument won't necessarily work because raising the tax could lead to an increase in illegal/smuggled cigarettes that WON'T BE TAXED (so the government WON'T have that revenue). We need an answer that matches this logic.

Final Answer: B

GMAT assassins aren't born, they're made,
Rich