Question: This question refers to the panel data regressions summarized in Table 12.1. a. Suppose that federal government is considering a new tax on ciga- rettes

This question refers to the panel data regressions summarized in Table 12.1.

a. Suppose that federal government is considering a new tax on ciga- rettes that is estimated to increase the retail price by $0.10 per pack. If the current price per pack is $2.00, use the regression in column (1) to predict the change in demand. Construct a 95% confidence interval for the change in demand.

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