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The government wants to reduce smoking for health reasons and believes it can do so by increasing cigarette prices through higher cigarette taxes. You are
The government wants to reduce smoking for health reasons and believes it can do so by increasing cigarette prices through higher cigarette taxes. You are given the following information: The price elasticity of demand for cigarettes (in absolute value) is 0.2. Government goal: To reduce the quantity of cigarettes demanded by 10 percent By what percent must the government raise the price of cigarettes by to achieve its desired goal? Enter your response rounded to 1 decimal place Your
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