Fill This Form To Receive Instant Help
Homework answers / question archive / Consider two groups of smokers, youth and addicted smokers
Consider two groups of smokers, youth and addicted smokers. Suppose the demand curve for cigarettes by youth smokers is given by Q=100-P and the demand curve for cigarettes by addicted smokers is given by Q-45-0.25P, where Q is the number of cartons of cigarettes and P is the price per carton. Suppose the government levies a tax on cigarettes that causes the market price of a carton of cigarettes to increase from $40 to $50. 47. The price elasticity of demand for cigarettes by youth smokers in this price range is 48. The price elasticity of demand for cigarettes by addicted smokers in this price range is