Elasticity of demand to dispute this claim

Assignment Help Microeconomics
Reference no: EM13143163

Governments often claim that they impose high taxes on products like cigarettes because smoking is bad for your health. They claim that the high taxes are intended to discourage your consumption. Use your understanding of the elasticity of demand to dispute this claim, assuming that cigarettes have a very inelastic demand. Illustrate with a graph.

Reference no: EM13143163

Questions Cloud

What values will sample means of process fall : Within what values will 95.44 percent of sample means of this process fall, if samples of n = 14 are taken and the process is in control (random)?
Define materials to construct an industrial building : Materials To Construct An Industrial Building, A small building can be constructed of steel or wood framing. A decision is made to use steel for fire resistance.
Calculate the concentration of bicarbonate ion : Calculate the concentration of bicarbonate ion, HCO3 -, in a 0.010 M H2CO3 solution that has the step wise dissociation constants Ka1 = 4.3 × 10-7 and Ka2 = 5.6 × 10-11.
What are the three central elements of chemiosmotic theory : What are the three central elements of chemiosmotic theory for coupling oxidation to phosphorylation in mitochondria?
Elasticity of demand to dispute this claim : Understanding of the elasticity of demand to dispute this claim, assuming that cigarettes have a very inelastic demand. Illustrate with a graph.
What proportion of intragroup transactions eliminated : Where only a proportion of subsidiary's shares are owned by a parent entity, what proportion of the intragroup transactions between the parent entity and the subsidiary will need to be eliminated on consolidation?
Describe the effect of an uncoupling agent : Mitochondria carrying out oxidative phosphorylation consume oxygen. a) What happens to oxygen in mitochondria? b) Describe the effect of an uncoupling agent such as 2,4-dinitrophenol on the rate of oxygen consumption.
What are advantages and disadvantages of functionalism? : what are advantages and disadvantages of functionalism?
In ashford courses : In Ashford courses, there are two different ways to submit assignments for grading. Depending on the system the course utilizes, assignments will either be submitted via the classroom Assignment Basket or Waypoint.

Reviews

Write a Review

 

Microeconomics Questions & Answers

  Compute pearmans rank order correlation coefficient

Neilsen Media Research wishes to pretest a questionnaire to be mailed to many thousand spectators. One question involves the ranking of male and female college students

  Considerations of product features-use of advertising

Create a list of reasons for your recommendation and include considerations of product features and use of advertising.

  Labor market indicator

Discuss why is it difficult to estimate who is and who is not in the labor force? What consequence does this have, if any, for the labor market indicator?

  Analysis of monopolist comapny

Assume the demand curve for a monopolist is Qd=500-P, and the marginal revenue function is MR=500-2Q. The firm has a marginal and average total cost of $50per unit.

  What is the supply curve of the competitive fringe firm

Find the market price, the quantity produce and the profit of each firm and what is the number of firms in the long run equilibrium?

  Rule for optimal input usage

According to the rule for optimal input usage, a firm should hire a person as long as her marginal revenue product is greater than her marginal cost to the company.

  Interest parity concept using formal methods

Discuss and explain the interest parity idea using formal methods Describe IS and LM curve behavior and nominal interest rate in the domestic economy,

  South korea

South Korea is one of the major beef importing countries. With no international trade, Korea's equilibrium price for beef was $10 million per kilo tonne and equilibrium quantity was 30 kilo tonne.

  New demand curve of chevrolet

Find the equation of the new demand curve for Chevrolets. Plot the new demand curve, D1 c' and, on the same graph, plot the curve for Chevrolets, D c'. found in 2 (d).

  Managerial accounting-analysis of cvp

Suppose that MN Company is currently selling 300 units of Product SD per month. Management wants to increase sales and feels this can be done by cutting the selling price by $22 per unit and increasing the advertising budget by $20,000 per month. ..

  Isoquant and isocost analysis

The manager of a public utility supplying electricity to a significant portion of a geographic region presides over an electrical generation facilities that can make electricity using either natural gas or oil,

  Describing the task of managers

Why is it significant for managers to understand both short run and long run supply and demand? Please give one hypothetical or real life example which illustrates your response.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd