Price elasticity of demand for cigarettes is relatively inelastic at low prices and relatively elastic at high prices. For example, at an average of $2 per pack, the price elasticity of demand is -0.34. At an average of $10 per pack, the price elasticity of demand is -1.70. States want to tax cigarettes because of their negative externalities and to acquire revenue. Two states plan to increase their cigarette taxes by 10%. In State A, the price per pack is $2. In State B, the price per pack is $10. Given the information above, would a 10% tax increase have different effects on cigarette consumption and tax revenue in these states? Explain.

Q: ether each of the following statements are positive or normative. positive statement normative state...

A: Positive Statements :  The unemployment rate in 2009 was lower than it was in 2018.  The unemploymen...

Q: In a unitary system of government, -------- O the national government has legal control over local g...

A: A unitary state is one in which the central government is the supreme power and the state is control...

Q: Provide three characteristics that prevent health care markets from allocating resources efficiently...

A: We have show that  ,The healthcare industry is a multibillion-dollar industry in the USÀ that provid...

Q: What would the government budget balance be equal to? $ trillion.

A: GDP is the sum of consumption, investment and government spending. When government spending exceeds ...

Q: 8 In Section 8.4 we studied the case of a government-mandated ban on the sale of low- quality cars. ...

A:

Q: In 1928, Charles Cobb and Paul Douglas published a study in which they modeled the growth of the US ...

A: *Hi there , question contains multiple sub -parts and as per our guidelines we are only allowed to s...

Q: Which of the following could explain an increase in the equilibrium interest rate and a decrease in ...

A: Market for loanable funds shows demand and supply for loanable funds and equilibrium in the market i...

Q: An index fund is a mutual fund that consists of: only inflation-indexed stocks. stocks that are not ...

A: A open-end investment company or exchange-traded fund (ETF) that tracks or matches the elements of a...

Q: Question 4 Let Nt = nNt-1 and Mt=zMt-1 for every period t, where z and n are both greater than 1. Th...

A: Given: et Nt = nNt?1and Mt = zMt?1 for every period t,where z and n are both greater than one. The m...

Q: The following graph shows the short-run average total cost curves for different plant sizes and the ...

A: Long run average cost shows the relationship between average total cost and the quantity of output w...

Q: u are hired by the government to evaluate the impact of a policy change that affects individuals but...

A: Difference in-differences approach endeavors to quantify the impacts of an abrupt change in financia...

Q: 7. U(x, y) = xy. a. What is the optimal bundle of x and y? Depict this graphically and budget line 4...

A: Given Utility function: U(x,y)=x0.5y0.5        ... (1) Budget equation:400=10x+20y             ... (...

Q: Neither the demand nor the supply of sugar is perfectly elastic or inelastic. If the government impo...

A: The link between amount the number of a trade goods that producers wish to sell at numerous costs an...

Q: An outward shift of a production possibilities curve can be caused by a. planting a more profitable...

A: Answer: PPF shifts outward when the overall production capacity of the economy increases. Production...

Q: gure 3.10 $4 $1 Number of pizzas per week Price of pizza

A: In the question above, pizza and pizza sauce are the complementary goods. These are those goods whic...

Q: Market demand for soda is given by QD = 4000 120P and market supply is given by = 200P. Solve for th...

A: QD = 4000 - 120P Qs = 200P For equilibrium, QD = Qs 4000 - 120P = 200P - 120P - 200P = - 4000 320P =...

Q: The following data is provided for a PPP project. To the People To the Government $1.8 million now a...

A: Given; Benefit= $95000 per year Cost= $1.8 million now and $200000 every three year  Disbenefit= $35...

Q: 7. The number of discouraged unemployed workers rose to 506,400, 2 ½ times as many as in the previou...

A:

Q: a. By what percentage did the price of a litre of petrol rise? b. By what percentage did the wage ri...

A: here we calculate the wage rise by the following method as follow;

Q: The cost of making a packet of the food in the year 2015 is RM20. Calculate the corresponding cost i...

A: Given information 4 Raw material for food preparation Prices in year 2015 and in year 2017 Price ind...

Q: Table 29-4 Bank of Pleasantville Assets Liabilities Reserves $3,000  Deposits $50,000  Loans 47,000...

A: The money provide is that the total quantity of currency and different quick assets in a very countr...

Q: 1. Discuss the idea of an opportunity cost and think of three opportunity costs that you have made t...

A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...

Q: Investors view an increase in the default risk of corporate bonds, relative to US Treasury bonds. Co...

A: Treasury bonds (sometimes known as T-bonds) are government debt instruments issued and sold by the U...

Q: The example of "analog reasoning" described in Frijters/Foster likened migration to... a)A picnic in...

A: Let's say individuals want to model the economic phenomenon of labour migration as an example of ana...

Q: .Enumerate at least five interpretations of the graph of the Total Utility curve 2.Enumerate at leas...

A: Total Utility Curve: Total utility curve is the combination of consumer demand theory and its utilit...

Q: a) Is (A, B) a separating or pooling equilibrium? b) Suppose the economy has 90% low risk types and ...

A: Rothschild and Stiglitz model is the competitive equilibrium model of the insurance market in which ...

Q: O produce too little output from the standpoint of efficiency. maximize its profits. lose money.

A: A monopoly business model portrays a market circumstance where one company claims all the market sha...

Q: On the following graph, plot Sam's demand for scented candles using the green points (triangle symbo...

A: First we calculate the aggregate demand. Price Sam's quantity demanded Teresa's quantity demanded...

Q: Money borrowed today is to be paid in 5 equal payments at the end of each quarter. If the interest i...

A: Given: The quarterly payment is = ₱ 21,293 The interest rate is = 3% compounded quarterly Money to b...

Q: teractive Book: Measuring a Nation's Income (Ch 10) g. California hires workers to repave Highway 66...

A: GDP delfator=Nominal GDPReal GDP×100We can re-write the formula as:Nominal GDP=GDP deflator×Real GDP...

Q: If the U.S. interest rate rises, the exchange rate value of the dollar ________ and net exports ____...

A: Net exports, the difference between exports and imports depend on exchange rate. Appreciation reduce...

Q: Q: What approach did the government take regarding the econor nd business in the 1920's? elect one:

A: 1920s period was marked by the economic fluctuations throughout the world.

Q: . An amount of P 250,000 is deposited now into a savings account that earns 8% per year. This amount...

A: Given: Amount=P 250000 Interest rate (r)=8%    

Q: If the Fed raises the federal funds rate so that the exchange rate rises, then imports ________ and ...

A: The value of a currency relative to the currency of associate other country or economic zone is thou...

Q: Consider the market for gas in the US. Suppose that due to Covid-19 that there is a fall in the pric...

A: When the price of oil falls due to Covid-19 which is used to produce gas, this leads to an increase ...

Q: Shen has plans to go to a movie and already has a $10 nonrefundable, nonexchangeable, and nontransfe...

A: Shen has a $10 nonrefundable, nonexchangeable, and non-transferable movie ticket.  Now Valerie, whom...

Q: What is the nominal value of the interest compounded continuously for a period of 3 years if the val...

A:

Q: Exhibit 30-3 Costs of Eliminating: Firm A Firm B Firm C lat ton of pollution $ 30 $ 50 $ 600 2nd ton...

A: Given are the cost of eliminating 4 tons of pollution for each firm A, B and C. There are two cases ...

Q: 5. A company manufacturing acids, upon inspection of the roofing of the plant, found out that it is ...

A: Solution:- 5)  Given, Cost of option 1 = P20000 Years(n1) = 3 Cost of option 2= P30000 Years(n2) =5...

Q: Government spending increases from G1 to G2. Which of the following diagrams best represent the chan...

A: Picture A is the correct one. If  Y=C+G. C=Y-G with h-l = 24 hrs or labor =0, Y=0, C=-G

Q: Which of the following is not a valid expenditure function? OŪ P.P, O UP. O None of these can be exp...

A: As we know that the expenditure function is strictly increasing in price p.  If e(p,u) is an expendi...

Q: The price elasticity of demand measures how much the quantity demanded responds to changes in the pr...

A: The elasticity of demand measures the responsiveness of items demanded. The demand determinant for w...

Q: the following table: 2011 2012 Quantity Price Quantity Price T-Shirts 80 $25 96 $25 Red Bull (cans) ...

A: Note:There are multiple sub parts in the question. We have solved the first three for you. If you se...

Q: Is there a role for government in reducing the negativeeffects of dual employment

A: Dual employment refers to a situation when an individual is engaged with two jobs at the same time. ...

Q: choices for the highlighted question is  4 sandwiches, 11sandwiches ,15 sandwiches ,18 sandwiches ...

A: A marginal product is an additional unit of input employed. it can be calculated by a change in outp...

Q: When a Canadian company exports the furniture they make to the U.S., who loses? Select an answer and...

A: Correct Answer: Option (b) Canadian Consumers. This is because when all the furniture is exported to...

Q: . Make up an example of a monthly supply  schedule for pizza and graph the implied supply  curve.  a...

A:   Meaning of Demand and Supply: The term demand refers to the willingness of an individual to purcha...

Q: What is the accumulated amount of a 10-year annuity paying ₱ 1,744 at the end of each year, with int...

A: Given information: Time, n = 10 years Annuity = 1744 Interest amount, r = 4%  

Q: Base on your graph, what do you think are the factors that may affect the demand of the existing pro...

A: Coca and Pepsi are two big brands of the cold  drink amd beverage industry . They are MNCs and are t...

Q: 3. As an economist, you have been assigned a task by the Lahore Cantonment Board to propose a projec...

A: Kind of the project for the cost-benefit analysis (CBA) is refer to the process and it is the benefi...