Question
In: Economics
2. In 2017, Americans spend about 1.3 billion dollars on e-cigarettes, equivalent to about 90 million...
2. In 2017, Americans spend about 1.3 billion dollars on e-cigarettes, equivalent to about 90 million units of pre-filled e-cigarettes (Q*=90). The average retail price (including taxes) was about $14.00 per unit. Statistical studies have shown that the price elasticity of demand is −0.4, and the price elasticity of supply is 0.6.
a. Using this information, derive linear demand and supply curves for the cigarette market.
b. Recent research findings about the negative impact of e-cigarette consumption has drawn some public concern. Suppose that e-cigarette firms decided to lower the price to 12 dollars in 2019, and its consumption volume in that year was 94 million units. What could you deduce from that about the price elasticity of demand?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
why do Americans spend million of dollars each year on dietary supplements? 100+ word for full...
why do Americans spend million of dollars each year on
dietary supplements? 100+ word for full credit
Gallup recently conducted a survey about the proportion of Americans who use e-cigarettes (vape). The survey...
Gallup recently conducted a survey about the proportion of
Americans who use e-cigarettes (vape). The survey data was
collected via random-digit-dial telephone interviews conducted July
1-12, 2019 with a random sample of 1525 adults living in all 50
U.S. states with a minimum quota of 70% cellphone respondents and
30% landline respondents, with additional minimum quotas by time
zone within region. The following table summarizes their results
for men and women:
Men
Women
Total
Vape
92
31
123
Dont Vape...
Gallup recently conducted a survey about the proportion of Americans who use e-cigarettes (vape). The following...
Gallup recently conducted a survey about the proportion of
Americans who use e-cigarettes (vape). The following example is
based on hypothetical data that is meant to be similar to the data
collected by Gallup.
The following table considers survey data about annual household
income and whether or not a person vapes.
<$35,000
$35,000-$99,999
$100,000+
Total
Vape
47
57
19
123
Do Not Vape
381
659
362
1402
Total
428
716
381
1525
Problem 1. Based on recent data, about 28%...
Gallup recently conducted a survey about the proportion of Americans who use e-cigarettes (vape). The following...
Gallup recently conducted a survey about the proportion of
Americans who use e-cigarettes (vape). The following example is
based on hypothetical data that is meant to be similar to the data
collected by Gallup.
The following table considers survey data about annual household
income and whether or not a person vapes.
<$35,000
$35,000-$99,999
$100,000+
Total
Vape
47
57
19
123
Do Not Vape
381
659
362
1402
Total
428
716
381
1525
Problem 1. Based on recent data, about 28%...
Gallup recently conducted a survey about the proportion of Americans who use e-cigarettes (vape). The survey...
Gallup recently conducted a survey about the proportion of
Americans who use e-cigarettes (vape). The survey data was
collected via random-digit-dial telephone interviews conducted July
1-12, 2019 with a random sample of 1525 adults living in all 50
U.S. states with a minimum quota of 70% cellphone respondents and
30% landline respondents, with additional minimum quotas by time
zone within region. The following table summarizes their results
for men and women: Men Women Total Vape 92 31 123 Do Not...
Investment in 2017 rises by 100 (all figures are in billion dollars). GDP in 2017 does...
Investment in 2017 rises by 100 (all figures are in billion
dollars). GDP in 2017 does not change. Also, Consumption (C) and
Government purchases (G) do not change.
Which is most likely to happen?
GDP in 2018 will rise by 100.
Capital in 2018 will rise by 100.
Capital in 2017 will rise by 100.
Net exports in 2017 will rise by 100.
The real wage will rise in 2017.
A hedge fund with $1.3 billion of assets charges a management fee of 2% and an...
A hedge fund with $1.3 billion of assets charges a management
fee of 2% and an incentive fee of 20% of returns over a money
market rate, which currently is 4%. Calculate total fees, both in
dollars and as a percent of assets under management, for portfolio
returns of: (Enter your answers in millions rounded to 1
decimal place.)
Portfolio Rate of Return (%)
Total Fee
($ million)
Total Fee
(%)
a.
−1
b.
0
c.
4
d.
8
The Federal Highway Administration predicts that Americans spend 8.1 billion hours per year in traffic jams....
The Federal Highway Administration predicts that Americans spend
8.1 billion hours per year in traffic jams. Most traffic experts
believe that adding and enlarging highway systems will not
alleviate the problem. As a result, current research on traffic
management is focusing on three areas: (1) the development of
computerized dashboard navigational systems; (2) the development of
roadside sensors and signals that monitor and help manage the flow
of traffic; and (3) the development of automated steering and speed
controls that...
The Federal Highway Administration predicts that Americans spend 8.1 billion hours per year in traffic jams....
The Federal Highway Administration predicts that Americans spend
8.1 billion hours per year in traffic jams. Most traffic experts
believe that adding and enlarging highway systems will not
alleviate the problem. As a result, current research on traffic
management is focusing on three areas: (1) the development of
computerized dashboard navigational systems; (2) the development of
roadside sensors and signals that monitor and help manage the flow
of traffic; and (3) the development of automated steering and speed
controls that...
People spend about $5 billion annually in the USA for the purchase of magnets used to...
People spend about $5 billion annually in the USA for the
purchase of magnets used to treat a wide variety of pain.
Researchers conducted a study to determine whether magnets are
effective in treating back pain. Pain was measured using the visual
analog scale (a higher score indicates less pain), and the results
of the study are obtained below[1]. The magnet was used
for 20 patients, resulting in a sample mean of 0.49 and a sample
standard deviation of 0.96....
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