Explain the equilibrium price will remain unchanged

Assignment Help Business Economics

Reference no: EM1349914

Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all: "The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes." Do you agree or disagree with this view? Explain.

Reference no: EM1349914

Questions Cloud

Explain what is the percentage change in labor productivity : Explain what is the percentage change in labor productivity from April to May for Larry's Auto Body Repair

Determine the year 1 cash flow : As a member of UA company's financial staff, you must estimate the Year one cash flow for a proposed project with the following information.

Create nested menus interface for a check-in hotel : Create a nested menus interface for a check-in and check-out hotel reservation system that can be used internationally. Use numbers to select a menu item.

Unionism in the workplace : Examine and evaluate whether unionized organizations reduce the level of conflict between management and labor, or exacerbate this conflict.

Explain the equilibrium price will remain unchanged : Explain the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes. Do you agree or disagree with this view.

What was the velocity of the block at time t : A ball dropped from a height of 4.00 m makes an elastic collision with the ground. Assuming no mechanical energy is lost due to air resistance, a) show that the ensuing motion is periodic, b) find the period of the motion.

Effectiveness of monetary policy actions : Recent years banks have exposed a greater tendency to loan out available funds rather than invest them. Determine impact, if any, does this have on the effectiveness of monetary policy actions taken by the Federal Reserve?

Differences between relationship and task conflict : What are the key differences between relationship and task conflict?

Total variable manufacturing cost per unit : Belinda Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.

User Account

All Pages