Microeconomics (9th Edition) (Pearson Series in Economics)
Microeconomics (9th Edition) (Pearson Series in Economics)
9th Edition
ISBN: 9780134184890
Author: PINDYCK
Publisher: PEARSON
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Chapter 18, Problem 5E

Medical research has shown the negative health effects of “secondhand” smoke. Recent social trends point to growing intolerance of smoking in public areas. If you are a smoker and you wish to continue smoking despite tougher anti-smoking laws, describe the effect of the following legislative proposals on your behavior. As a result of these programs, do you, the individual smoker, benefit? Does society benefit as a whole?

a. A bill is proposed that would lower tar and nicotine levels in all cigarettes.

b. A tax is levied on each pack of cigarettes.

c. A tax is levied on each pack of cigarettes sold.

d. Smokers would be required to carry governmentissued smoking permits at all times.

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