Chapter 20 - Assignment 2: Cigarette Taxes and Demand Elasticity
Chapter 20 - Assignment 2: Cigarette Taxes and Demand Elasticity
Read the following two documents:
- Effects of taxation increases on consumption (Section 7.6 of Tobacco in Australia: Facts and Issues (by Quit Victoria the Victorian Smoking ande Health Program, Australia)
- Effective Interventions for Youth: Price and Affordability (National Clearinghouse on Tobacco and Health - Canada)
- If the government wishes to discourage tobacco use, why is it important to know the price elasticity of demand?
- Why is the estimated long-run price elasticity of demand larger than the short-run price elasticity of demand?
- Why does price elasticity differ for different age groups?
- Do the Australian, U.S. and Canadian studies discussed in these articles generally agree?
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