Assuming that the price of a pack of cigarettes is $5 before the tax and if the actual price elasticity of demand for California-taxed cigarettes is 0.8, c. how much will the quantity demanded decrease with the new tax? percent d. how much additional revenue will the state take in? $ billion
Assuming that the price of a pack of cigarettes is $5 before the tax and if the actual price elasticity of demand for California-taxed cigarettes is 0.8, c. how much will the quantity demanded decrease with the new tax? percent d. how much additional revenue will the state take in? $ billion
Principles of Microeconomics (MindTap Course List)
8th Edition
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter6: Supply, Demand And Government Policies
Section: Chapter Questions
Problem 4PA
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