An estimated 80% increase in the retail price of cigarettes is necessary to cause a 30% drop
Question:
An estimated 80% increase in the retail price of cigarettes is necessary to cause a 30% drop in the number of cigarettes sold. Would such a price increase help or hurt tobacco industry profits? What would be the likely effect on industry profits if this price boost was simply caused by a $1.50 per pack increase in cigarette excise taxes?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
The price elasticity of demand for cigarettes is highly inelastic if an 80 increase in retail prices ...View the full answer
Answered By
Nazrin Ziad
I am a post graduate in Zoology with specialization in Entomology.I also have a Bachelor degree in Education.I posess more than 10 years of teaching as well as tutoring experience.I have done a project on histopathological analysis on alcohol treated liver of Albino Mice.
I can deal with every field under Biology from basic to advanced level.I can also guide you for your project works related to biological subjects other than tutoring.You can also seek my help for cracking competitive exams with biology as one of the subjects.
3.30+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Economics questions
-
What would be the likely effect on the yield to maturity of a bond resulting from: a. an increase in the issuing firm's times interest-earned ratio b. an increase in the issuing firm's debt-equity...
-
The retail price of Paradise Island cheddar cheese dropped from $10.98 to $9.98 when the package size was reduced from 700 g to 600 g. What was the percent change in the unit price?
-
What would be the likely effect on the yield to maturity of a bond resulting from? a. An increase in the issuing firms times-interest-earned ratio. b. An increase in the issuing firms debt-to-equity...
-
Prove that: [A (B C)] + [B (C A)] + [C (A B)] = 0. Under what conditions does A (B C) = (A B) C?
-
A 400-m3 storage tank is being constructed to hold LNG, liquified natural gas, which may be assumed to be essentially pure methane. If the tank is to contain 90% liquid and 10% vapor, by volume, at...
-
Assume the role of Juan Hernandez. Based on the information in Chapter 11, create a presentation to employees about temporary changes in work shifts. You could base the presentation on Figure 11.4....
-
Adam Smith, the founder of modern economics, remarked in The Wealth of Nations (1776) concerning the balancing of budgets, What is prudence in the conduct of every private family can scarce be folly...
-
Valuing Bonds, Microhard has issued a bond with the following characteristics PAR: $1,000 Time to Maturity: 30 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the...
-
The graph shows the demand curve for blankets and the market price of a blanket. What is the value of the 20th blanket? 80- 70- 60- Draw a point that shows the value of the 20th blanket. 50- The...
-
For each of the following scenarios, a different payment agreement is described. Using what you know about multiplicities, determine them in each relationship (the minimum next to Sales Order can be...
-
How is a price-consumption curve related to a demand curve?
-
Individual consumer demand declines for inferior goods as personal income increases because consumers replace them with more desirable alternatives. Is an inverse relation between demand and national...
-
What are the amount and character of the gain or loss recognized by the distributing corporation when making liquidating distributions in the following situations? What is the shareholders basis for...
-
How does cultural diversity within global software development teams affect communication and the management of people aspects? What strategies can project managers employ to bridge cultural gaps and...
-
How does Coca-Cola market their products in asia. Is this different than in the US? explain
-
How would you plan a requirements elicitation session for privacy law requirements of a product with a legal team of organization? Please explain all tools and technique that a business analysis can...
-
what is the self-other relation with Simone de Beauvoir's? please explain
-
How would you implement organizational change successfully? However, it takes a lot of time as you will get there over time. What are some kinds of tips and tricks that you can best propel ways on...
-
On October 01, 2010, a Truck was purchased for 8,00,000 by Laxmi Transport Ltd. Depreciation was provided at 15% p.a. on the diminishing balance basis on this truck. On December 31, 2013 this Truck...
-
A 2500-lbm car moving at 15 mi/h is accelerated at a constant rate of 15 ft/s 2 up to a speed of 50 mi/h. Calculate force and total time required?
-
According to the American Metal Markets Magazine, the spot market price of U.S. hot rolled steel recently reached $580 per ton. Less than a year ago this same ton of steel was only $260. A number of...
-
The French government announced plans to convert state-owned power firms EDF and GDF into separate limited companies that operate in geographically distinct markets. BBC News reported that Frances...
-
The owner of an Italian restaurant has just been notified by her landlord that the monthly lease on the building in which the restaurant operates will increase by 20 percent at the beginning of the...
-
A married couple filing jointly is currently taking the standard deduction. They paid state income tax during the tax year 2022 in the amount of 35,000. they have no othe itemized deduction. write a...
-
PETER OBTAINS JUDGEMENT AGAINST CHRIS IN FEDERAL COURT OF 10,000 PETER ENFORCES THE JUDGEMENT THROUGH AN INCOME EXECUTION. CHRIS EARNS AFTER TAXES $104,000 PER YEAR IN DISPOSABLE EARNINGS. FOR...
-
What is the impact if the auditor discovers that the client forgot to accrue the utility expense?
Study smarter with the SolutionInn App