f the government wants to decrease the quantity consumed of cigarettes 20%, what percentage of tax would they have to levy on cigarette consumption?​

Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
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Chapter19: Elasticity
Section: Chapter Questions
Problem 13QP
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Own Price elasticity of demand

Cigarettes

-0.5

Alcohol

-1.00

Soda

-1.5


If the government wants to decrease the quantity consumed of cigarettes 20%, what percentage of tax would they have to levy on cigarette consumption?​
 

Question 39 options:

 
​20%
 
​30%
 
​40%
 
​50%
 

Question 40 (1 point)

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