2020
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
How much rise is expected in imposed duty in the sales of cigarettes?
|
|
5%
|
|
|
6%
|
|
|
7%
|
|
|
8%
|
Explanation:
Detailed explanation-1: -The current federal cigarette tax is $1.01 per pack.
Detailed explanation-2: -The elasticity of smoking prevalence and intensity are estimated to be -0.67 and -0.04, respectively. The study finds that income groups respond differently to cigarette price increases. The price elasticity of demand is estimated to be -0.90 and 0.39 in low- and high-income individuals, respectively.
There is 1 question to complete.