The price elasticity of demand for cigarettes is 0.4. If government wants to reduce smoking by 10 percent, by how much should it raise the price of cigarettes by imposing a tax?
A) by 10 percent
B) by 20 percent
C) by 25 percent
D) by 50 percent
C
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All of the following result from an optimal level of conflict EXCEPT:
Economic profit of a decision in question equals
a. accounting profit of the decision in question + its opportunity cost. b. accounting profit of the decision in question ? accounting profit of the best available alternative. c. accounting profit of the decision in question + its opportunity cost + overheads. d. its opportunity cost + accounting profit of the best available alternative.
Graphically, the effect of a government subsidy on a good is shown as
A) a leftward shift of the market demand curve. B) a rightward shift of the market demand curve. C) a downward movement along the market demand curve. D) no change to the market demand curve.
What is the present value of $1,000 one year from now at an interest rate of 5%?
A. $952.4 B. $1050 C. $50 D. $950