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Suppose That You Have Estimated That Demand for Cigarettes Among

Question 143

Multiple Choice

Suppose that you have estimated that demand for cigarettes among adults is different from the demand for cigarettes among teenagers.The demand curves that you have estimated are shown below: Suppose that you have estimated that demand for cigarettes among adults is different from the demand for cigarettes among teenagers.The demand curves that you have estimated are shown below:   Suppose the current price for a pack of cigarettes is $3.00.A $1.00 per pack tax on cigarettes has been proposed. This proposed tax will decrease the number of cigarettes smoked A) to a greater extent among adults than among teenagers. B) to a greater extent among teenagers than among adults. C) equally among teenagers and among adults. D) only if demand is much more elastic than you have estimated.
Suppose the current price for a pack of cigarettes is $3.00.A $1.00 per pack tax on cigarettes has been proposed.
This proposed tax will decrease the number of cigarettes smoked


A) to a greater extent among adults than among teenagers.
B) to a greater extent among teenagers than among adults.
C) equally among teenagers and among adults.
D) only if demand is much more elastic than you have estimated.

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