Using Mannings estimate of external costs of $0.33 per pack of cigarettes: (a) Calculate the new market

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Using Manning’s estimate of external costs of $0.33 per pack of cigarettes:

(a) Calculate the new market price for cigarettes using a demand elasticity of 0.25.

Would this be economically effi cient?

(b) Calculate the government’s revenue from a $0.33 tax on cigarettes in part (a).

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

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Question Posted: Jan 29, 2024 03:04 AM

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Using Mannings estimate of external costs of $0.33 per pack of cigarettes: (a) Calculate the new market

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a To calculate the new market price for cigarettes using a demand elasticity of 025 and an e...View the full answer

The Economics Of Health And Health Care

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