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4 years ago

Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.8.

Business

1 answer:

alexira [117]4 years ago

6 0

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1). Price elasticity demand for cigarettes = 0.80

Government want to decrease smoking = 20% = 0.20

Require increase price rate = 0.20 ÷ 0.80 = 0.25 = 25%

Government Should Increase the Price by

= Current Cost of Cigarettes Pack × Require Increase Price Rate + Current Cost of Cigarettes Pack

= $5 × 25% + $5

= $1.25 + $5

= $6.25 a pack

2). If the government constantly increases the price of cigarettes, the impact on smoking will be higher in 1 year from now than in 3 months from now. It takes time to break a Smoking habit. And it takes people a long time to get out or reduce their smoking addiction.

3). According to the study, adolescents have a higher demand price elasticity than adults because adolescents have less income than adults, and they are more sensitive to price. If the price of cigarettes rises teenagers don't have enough funds to invest in their smoking habits because of their low savings and wages. Cigarette addiction in adults is more than youth addictions. And the demand for cigarettes among adults is difficult to reduce.

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Suppose consumer income increases. If grass seed is a normal good, the equilibrium price of grass seed will (Hint: use what you

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Consumer income has no correlation with the equilibrium price of a product. Thus the price will c. Not change

Explanation:

When the consumer income increases, they will be able to buy a product more if they require it and if they do not require it they are able to spend that money or save it up as they please to.

As equilibrium price of a product is completely dependent upon supply and demand correlation.

The income of the consumer has little to do with it unless a relation between increased income and increased demand is established, there is little evidence to show that there will be a fluctuation in the prices of the grass seed in this case.

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3 years ago

If private investors put a lot of money into the U.S. economy, the gross domestic product will increase. What else will likely o

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An increase in inflation and a decrease in unemployment.

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3 years ago

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The function of media advertising is to support the economy, provide information about products, and underwrite media costs asso

Lynna [10]

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3 years ago

there are dozens of laptop manufacturers around the world. according to the idea of efficient production, there should only be o

jonny [76]

According to the idea of efficient production, option a. each firm independently decides how many laptops to produce, and the marginal cost of the last unit produced will be the same for all firms.

<h3>What do you mean by the term production?</h3>

Production is known to be a term that connote the act or the process of creating or making of goods, products or services from raw materials or other forms/components.

Note that In production is one that tends to make use of inputs and as well as uses them to make an output that is known to be fit for consumption and it is one that gives value to the end-user or customer.

Therefore, According to the idea of efficient production, option a. each firm independently decides how many laptops to produce, and the marginal cost of the last unit produced will be the same for all firms.

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There are dozens of laptop manufacturers around the world.

According to the idea of efficient production,

a. each firm independently decides how many laptops to produce, and the marginal cost of the last unit produced will be the same for all firms.

b. a competitive market will drive most manufacturers out of business, leaving just a few firms to produce at the lowest possible cost.

c. government regulation will ensure that every firm produces at the lowest marginal cost.

d. there should only be one laptop manufacturer, making laptops at the lowest marginal cost.

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2 years ago

In the Shaping Department of Rollins Company the unit materials cost is $5.00 and the unit conversion cost is $3.00. The departm

sukhopar [10]

Answer:

The answer is: C

Explanation:

This costing question assesses the stages of completion of inventory during the manufacturing process. The significant point of information is: all materials are added at the beginning of the process, meaning at the end of the period, materials are fully complete, that is, no more materials will be added to the ending work in process. However, the conversion costs are yet to be fully utilised. In this case, equivalent units (partial units computed as completed units for purposes of costing at the end of a financial period) will have to be calculated to reflect the stage of completion.

Materials cost: 5000 units at 100% completion yields 5000 units for costing

Conversion costs: 5000 units at 20% conversion completion is equal to: 5000*0.2= 1000 equivalent units

The costing calculation for ending work in process is as follows:

Materials cost: 5000 units at $5.00 per unit = $25,000

Conversion cost: 1000 units at $3.00 per unit = $3000

The total cost for ending work in process is the sum of the materials cost and conversion cost = $28,000

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3 years ago