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One estimate of the price elasticity of demand for cigarettes puts it at 0.4: A 10 percent increase in the price of cigarettes will lead to a 4 percent decline in the quantity demanded.
a) Does this imply that an increase in the tax on cigarettes is an effective way to reduce smoking? Briefly explain.
b) Does it imply that an increase in the cigarette tax is an effective way for the government to increase its revenue? Briefly explain.
c) If government officials would like both to reduce smoking and to increase government revenue from the tax
q.you are given the following information about an economy c 0.80di i 200 g 500 x-im -30 t 14y.1. find equilibrium
Which is an expansionary money policy?
Using an outside source, such as the Internet or the Library, determine the typical height of a terrestrial microwave tower.
the new quantity is 85, looking for the formula explaining the new
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What is a trading bloc and a trade concentration ratio, and does it make sense that trade concentration ratios should be greater than +1? What kind of trading bloc is NAFTA and how has it influenced trade within the bloc? What is multilateralism and ..
Make a list of products and services which are least satisfactory and have shown the least improvement over time. How many of these are produced by government? Do you agree or disagree with this statement by Milton Friedman: "Postal serive, elementar..
Use a 0.05 significance level to test the claim that fewer than half of all teenagers in the population feel that grades are their greatest source of pressure.
Consider a duopoly model where two firms compete in their prices sequentially. Denote firm 1's price by p1 and firm 2's price by p2. Every firm has a constant marginal cost c > 0 but no fixed cost. Demand functions faced by the two firms are, respect..
Let the exchange rate be defined as the number of dollars per Japanese yen.
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