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Requesting a tutors help in explaining this question. I found different answers on course hero, so I'm confused and need help explaining. Let's assume that
Requesting a tutors help in explaining this question. I found different answers on course hero, so I'm confused and need help explaining.
Let's assume that cigarettes have a price elasticity of demand = -0.4. If the government wants to decrease the quantity consumed of cigarettes 30%, what percentage of tax would they have to levy on cigarette consumption?
a.1.3%
b.12%
c. 75%
d. 85%
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