1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Komok [63]
3 years ago
14

Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about 0.2. If a

pack of cigarettes currently costs $5 and the government wants to reduce smoking by 10%, it should increase the price by. If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be_________ than the effect 5 years from now
Business
1 answer:
melomori [17]3 years ago
5 0

Answer:

$7.5

Greater

Explanation:

Price elasticity of demand = percentage change in quantity demanded/ percentage change in price

0.2 = 10%/ percentage change in price

percentage change in quantity demanded = 50% = 0.5

0.5 = (New price - $5) / $5

New price = (5 × 0.5) + 5 = $7.5

In the short run, demand is relatively inelastic because consumers need time to find suitable substitutes but in the long run, demand is usually more elastic.

I hope my answer helps you

You might be interested in
Because leaders need to devise effective solutions in short time spans with limited information, they need to have
Ghella [55]

1. Because leaders need to devise effective solutions in short time spans with limited information, they need to have cognitive abilities.

2. Trait appraisals are subject to validity problems due to evaluator bias.

Explanation:

Cognitive abilities are knowledge based on the brain, which we need to perform from easy to complex tasks. They are mostly about how they read, recall, resolve issues and pay close attention than about any true knowledge. They were about how they think.

Traits have included the personality, behavior, leadership, work ethics, leadership skills, ethical sense, loyalty, flexibility, and judgment. On either hand, if the trait is legitly related to the work, then it might be valued.A trait is a person's own characteristic.

5 0
3 years ago
Which of the following happens when there are market failures? A) Firms compete more leading to more efficiency. B) The invisibl
lbvjy [14]

Answer:

The correct answer is option D.

Explanation:

A market failure refers to the situaion where the market forces fail to efficiently allocate resources. It happens because of a number of reasons such as externalities, monopoly, asymmetrical information, tragedy of commons etc.

In case of market failure, the government has to intervene to efficiently allocate resources. The failure of price mechanism to produce goods efficiemtly results in government to intervene.

5 0
3 years ago
At age 50, Charles began receiving payments under a distribution method that provides for substantially equal payments over his
shusha [124]

Answer:

correct answer is 4) $169,000.00

Explanation:

given data

received distributions totaling =  $14,000

remaining benefits lump-sum = $155,000

solution

we know that substantial payment by as distribution method not subjected to the early distribution penalty

but lum sum amount distribution before age 59.5 is subject to 10% penalty

so here we can say till 59.5 year annuity payment not changed

so amount subject to the penalty is = $14000 + $155000

amount subject to the penalty is = $169000

so correct answer is 4) $169,000.00

4 0
3 years ago
The _ is the financial statement describing a firms yearly cash receipts and cash payments
erastova [34]
Statement of cash flows....
6 0
3 years ago
Which of the following is SIQ most likely to
vaieri [72.5K]
The answer: is E
Explain: hope this helps
3 0
3 years ago
Other questions:
  • Matt Shaw buys 100 shares of common stock for $8,000 in January. The value of the stock fluctuates in a narrow range (averaging
    12·1 answer
  • Doctors have been looking for a cure for which disease since 1981?
    5·1 answer
  • One of the primary values of convertible debt is that it is attractive to investors because:_______.
    11·1 answer
  • A special form of licensing in which one company grants another company the right to market its product in accordance with its s
    14·1 answer
  • Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela
    13·1 answer
  • Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufact
    9·1 answer
  • Indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 20
    7·1 answer
  • High-Low Method The manufacturing costs of Rosenthal Industries for the first three months of the year follow:
    15·1 answer
  • If the effective annual yield on a bond is equal to the bondʹs coupon rate, the bond will have a market value that is
    5·1 answer
  • "Hi, Mr. Tushman, it's so nice to see you again," said Mom. "This is my son, August."
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!