Given the inelasticity of cigarette demand, discuss an excise tax on cigarettes in terms of efficiency loss
Question:
Given the inelasticity of cigarette demand, discuss an excise tax on cigarettes in terms of efficiency loss and tax incidence.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
Since cigarette demand is relatively inelastic the slope of the inverse demand schedule wi...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Microeconomics Principles, Problems and Policies
ISBN: 978-1259450242
20th edition
Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
Question Posted:
Students also viewed these Business questions
-
After having declined during the 1970s and 1980s, the proportion of teenage smokers in the United States has risen sharply since the early-1990s. To reverse this trend, advertising programs have been...
-
In the United States, each state government can impose its own excise tax on the sale of cigarettes. Suppose that in the state of North Texarkana, the state government imposes a tax of $2.00 per pack...
-
Suppose the supply-and-demand schedules for cigarettes are as follows: a. What are the equilibrium price and equilibrium quantity? b. Now the government levies a $1.25 per carton excise tax on...
-
Gerald De Beer is a 38-year-old vibrant, outgoing young man who has been employed as a digital artist at Innovate Tech Solutions (Pty) Ltd ("Innovate Tech") since 1 May 2019. Details of Geralds...
-
Most economists assume that firms always act to maximize profit. What does the theory of asymmetric information have to say about that?
-
The following figure, from the Federal Reserve Monetary Policy Report to the Congress (July 21, 2009), shows mortgage delinquency rates from 2001 to 2009 in the United States. a) Explain why mortgage...
-
How might AI change a lower-level managers job differently than a top managers job by 2030?
-
John Ingles has provided you with the following information related to his various investment holdings as of December 31, 2012. Interest earned on joint bank account with his spouse (spouse...
-
Mr. Johnson has 2 medical insurance policies. To prevent duplication of payment for the same medical expense, the policies include a Question 7 options: coordination of benefits statement....
-
Alfa and Co., manufacturer of jeans has partially completed jeans in the production process. So far the company has spent Rs. 50,000 on this lot. If the company decides to sell these partially...
-
The impact of Walmart on its suppliers is a. Unambiguously positive. b. Unambiguously negative. c. Positive and negative in that Walmart enlarges the market for their products but demands a much...
-
How do the top two categories of federal employment differ from the top two categories of local and state employment?
-
With a single explanatory variable, the equation used to obtain the between estimator is where the overbar represents the average over time. We can assume that E(a.) = 0 because we have included an...
-
Media Skills: Messaging Assume you need to share news about a schedule slip on a customer project you are managing. You had originally promised it would be finished by June 1, but you now believe it...
-
Each of the following sentences contains at least one error in grammar, capitalization, punctuation, abbreviation, number style, word division, or vocabulary. Rewrite each sentence, correcting all...
-
Media Skills: Social Networking, Team Skills With a team assigned by your instructor, choose a company that looks interesting to you and evaluate 10 of its social media posts on Facebook, Twitter,...
-
Media Skills: Social Networking Pick a company in any industry that interests you. Imagine you are doing strategic planning for this firm, and identify one of your companys key competitors. Now...
-
Write a concrete phrase for each of these vague phrases (make up any details you need): 1. Sometime this spring 2. A substantial savings 3. A large number attended 4. Increased efficiency 5. Expanded...
-
Showing the details, find all solutions or indicate that no solution exists. 5x - 3y + z = 7 2x + 3y - z = 0 8x + 9y - 3z = 2
-
Uniform electric field in Figure a uniform electric field is directed out of the page within a circular region of radius R = 3.00 cm. The magnitude of the electric field is given by E = (4.50 x 10-3...
-
Other things equal, what effect will each of the following changes independently have on the equilibrium level of real GDP in the private closed economy? a. A decline in the real interest rate. b. An...
-
Other things equal, what effect will each of the following changes independently have on the equilibrium level of real GDP in the private closed economy? a. A decline in the real interest rate. b. An...
-
Why does equilibrium real GDP occur where C + Ig = GDP in a private closed economy? What happens to real GDP when C = Ig exceeds GDP? When C = Ig is less than GDP? What two expenditure components of...
-
Halifax Manufacturing allows its customers to return merchandise for any reason and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of...
-
1. Durango Mountain Bike Tours' ending cash balance as of December 31, 2020 was $10,000. Its expected cash collections and payments for the next six months are given in the following table. Month...
-
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0 to 1,500 units, and monthly production...
Study smarter with the SolutionInn App