Higher cigarette prices will reduce demand for cigarettes

Assignment Help Business Economics
Reference no: EM131174832

Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all. "The laws of supply and demand indicate that higher prices are ineffective in reducing smoking. In particular, higher cigarette prices will reduce the demand for cigarettes. This reduction in demand will push the equilibrium price back down to its original level. Since the equilibrium price will remain unchanged, smokers will consume the same number of cigarettes." Do you agree or disagree with this view? Explain

Reference no: EM131174832

Questions Cloud

Identify the major themes that emerged : Describes but does not analyze a test's items and procedures for appropriateness and fairness for its intended purpose and population.
How expensive the shopping basket plus gallon of gas : Estimate how expensive the shopping basket plus a gallon of gas will be by 2019 if costs continue to rise as they did in the period from 2008 to 2013. (Hint: to determine the inflation rate in the price of each commodity do the following:) 2013 $ 78...
What is present value of the salvage value of the equipment : What is the present value of the salvage value of the equipment?- What is the present value of the annual cash inflows?
Mark zuckerberg on team dynamics : Watch the video titled "Mark Zuckerberg on Team Dynamics" located athttp://www.youtube.com/watch?v=fjvuq6mf28g. Then express whether or not you agree with Mark Zuckerberg's opinion on managing team dynamics.
Higher cigarette prices will reduce demand for cigarettes : Some have argued that higher cigarette prices do not deter smoking. While there are many arguments both for and against this view, some find the following argument to be the most persuasive of all. "The laws of supply and demand indicate that higher ..
Type of probability is best characterized : An analyst believes the probability that U.S. stock returns exceed long-term corporate bond returns over a 5-year period is based on personal assessment. This type of probability is best characterized as a(n) ____________.
Compute points on the velocity profile from the tube wall : Compute points on the velocity profile from the tube wall to the centerline of a plastic pipe, 125 mm OD x 7.4 mm wall, if the volume flow rate of gasoline (sg = 0.68) at 25°C is 3.0 L/min. Use increments of 8.0 mm and include the velocity at the ..
How do laws reflect principles of social psychology : How do laws reflect principles of social psychology? Evaluate the implications of a new policy for the organization and individuals. How will this new policy be perceived by others in the organization?
Annual toll revenue from newly proposed highway construction : An engineer estimates that the annual toll revenue from a newly proposed highway construction over 20 years will increase at a rate of 4%. The revenue for the first year is $2,000,000. What is the present value of the toll revenue if the state can ea..

Reviews

Write a Review

Business Economics Questions & Answers

  The difference between gross and net investment is referred

The difference between gross and net investment is referred to as:

  Money performing-medium of exchange-store of value

Your article shows money performing (or failing to perform) at least one of the following functions: (a) medium of exchange, (b) store of value, or (c) standard of value. What is the particular form of money (M1, M2, etc.) that would be the smallest ..

  Mexican migrants to the US may not have Americano dream

Which of the following is likely to contradict Samuel Huntington's idea that Mexican migrants to the US may not have an "Americano dream?"

  Central bank respond to maintain the fixed exchange rate

Suppose that an economy suddenly, deliberately fixes its exchange rate at a value that gives it a competitive advantage in world markets for trading goods. What would you expect would happen to the demand for its currency in world markets once its ex..

  The lag between the time the need for physical action

The lag between the time the need for physical action is recognized and the time action is taken is referred to as the

  The same in the natural sciences as in economics

The notion of sustainability is not the same in the natural sciences as in economics. In the natural sciences, sustainability frequently means maintaining a constant physical flow of each and every resource (e.g., fish from the sea or wood from the f..

  Bill operates a boat rental business in a competitive

bill operates a boat rental business in a competitive industry. he owns 10 boats and pays 1000 per month on the loan

  A random walk process with drift

A random walk process with drift:

  Consider a couple decision about how many children to have

Consider a couple's decision about how many children to have. Assume that over a lifetime a couple has 200,000 hours of time to either work or raise children.

  What does this mean to be price elastic or price inelastic

The demand function for a good is Q = 200 – 10P where Q is the quantity and P is the price. Calculate the price elasticity of demand at prices of $5, $10, and $15 (i.e., as the price changes from $5 to $10 and as it changes from $10 to $15) to show h..

  Most advanced form of regional integration

Although European Union is the most advanced form of regional integration, it is currently facing a challenging time. What are some of the major challenges facing the EU?

  Interest amount minus simple interest amount

Arian is about to borrow $2,587.11 from his uncle. He has an option to repay the loan at the end of year 4 with 3.11% simple interest per year or with 6.8% interest per year, compounded annually. What is the difference of the total interest paid over..

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