By how much should it increase the price

Assignment Help Macroeconomics
Reference no: EM13339708

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a packet of cigarettes currently costs $8 and the government wants to reduce smoking by 20%, by how much should it increase the price?

Reference no: EM13339708

Questions Cloud

Find the interface temperature for the pine and insulation : If a 4 cm piece of insulation is added to the pine ceiling kpine = 0.120 J/msC kinsul = 0.042 J/msC If a 4 cm piece of insulation is added to the pine ceiling , find the interface temperature for the pine and insulation.
Find the minimum necessary radius for the balloon : A spherical hydrogen-filled balloon is used to lift a load of 5595 N (in addition to the weight of the hydrogen). Find the minimum necessary radius for the balloon
How many liters of cooling water have to be pumped : Consider a reactor where the intake water is at 18degrees C. State regulations limit the temperature of the output water to 30degreesC so as not to harm aquatic organisms.How many liters of cooling water have to be pumped
Compute the coefficient of volume expansion of the glass : When the flask and mercury are warmed together to a temperature of 52.0 degrees C , a volume of 8.35cm3 of mercury overflows the flask.If the coefficient of volume expansion of mercury is 1.8 * 10^-4 /K ,
By how much should it increase the price : Studies indicate that the price elasticity of demand for cigarettes is about 0.4. If a packet of cigarettes currently costs $8 and the government wants to reduce smoking by 20%, by how much should it increase the price?
Estimate how long it will take for the bleach molecules : Estimate how long it will take for the bleach molecules to diffuse through the extent of the room, assuming that the bleach bottle is in the center of the room, and the room is perfectly square, and is a 10 foot x 10 foot room.
Requirements for the accounting scandal report : Requirements for the Accounting Scandal Report for a Governmental or Non-Profit Organization (can be federal, state, municipality or non-profit hospital,
How can we definean instance of this class : How can we definean instance of this class?
Estimate the probability that a 110mph ball will tunnel : The racket is a potential-energy barrier whose height is the energy of the slowest string-breaking ball. Suppose that a 100 g tennis ball traveling at 220mph is just sufficient to break the 2.0-mm-thick strings.

Reviews

Write a Review

Macroeconomics Questions & Answers

  Inflation targeting be a good policy

Why might it be difficult for the Fed to formally adopt inflation targeting?  Would inflation targeting be a good policy for the Fed in the present economic environment

  In using the taylor rule

In using the Taylor Rule as a guideline for monetary policy, what are the pros and cons of using forecasted values of inflation and output rather than observed values of these variables?

  Describe the present economic crisis situation in europe

Describe the present economic crisis situation in Europe.  Why has it been so difficult for the Europeans to find a solution to this problem?   Comment on what implications the crisis may have for the rest of the world if Europeans are not able to ag..

  Long-term federal government budget problems

Question:. Explain why there are long-term Federal government budget problems. Explain why the base-line forecast of the CBO is misleading.

  Derive and compare demand curve

Question based on Derive and compare demand curve,  Derive Ambrose's demand function for peanuts. How does it compare with Johnny's demand curve for peanuts?

  Problem based on utility function

Problem based on  Utility Function - Problem,  Answer and explain the following using a diagram which is completely labeled.

  Laffer curve : tax rate and tax revenue

Question based on Laffer Curve : Tax Rate and Tax Revenue,  Do raising tax rates necessarily raise tax revenue? What factors affect how tax revenue changes when tax rates change?

  Problem - income elasticity of demand

Problem - Income Elasticity of Demand,  Interpret the following Income Elasticities of Demand (YED) values for the following and state if the good is normal or inferior; YED= +0.5 and YED= -2.5

  Positive balance of payment

Question Positive Balance of Payment: "Things will look good for the US if we could just get to where we are consistently running a positive Balance of Payments."

  Effect of recession on the investment curve

Comment on the effect of a recession on the investment curve (only) and on the level of savings, investment, and the equilibrium real interest rate in the financial crisis that hits United States first starting in fall 2007.

  Affect of falling domestic investment on trade surplus and

How will a fall in domestic investment affect the trade surplus and net capital outflows in the domestic economy, the trade deficit and capital inflows in the rest of the world.

  Crises in the banking sector and bank run

Banking crises crisis decreases depositors' confidence in the banking system. What would be the effect of a rumor about a banking crisis on checkable deposits in such a country?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd