4. Suppose consumers buy

4. Suppose consumers buy

4. Suppose consumers buy 30 million packs of cigarettes per month at a price of $4 per pack. If a $1 tax is added to that price,By what percentage will cigarette sales decline in the short run? (See Table 20.1 for a clue.)Relatively elastic ( E . 1)Airline travel, long run 2.4Restaurant meals 2.3Fresh fish 2.2New cars, short run 1.2?1.5Unitary elastic ( E 5 1)Private education 1.1Radios and televisions 1.2Shoes 0.9Movies 0.9Relatively inelastic (E , 1)Cigarettes 0.4Coffee 0.3Gasoline, short run 0.2Electricity (in homes) 0.1Long-distance phone calls 0.1

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