There are two estimates for the price elasticity of demand for cigarettes, one is -0.4 and the other is -0.8. Assume that the government decides to increase cigarette taxes which leads to a 25% increase in cigarette prices. You are hired as a consultant to use your economics expertise to predict the impact of this tax change. Use the given information to answer the following questions.

a. One of the elasticity figures refers to short-run and the other to long-run. Briefly explain which estimate corresponds to which case and why.

b. In each case (i.e. short-run and long-run), by how much will the quantity demanded for cigarettes change? Show your calculations.

c. Based on your answer to part b above, would you say the tax hike worked best in the short-run or the long-run, if the aim was to reduce negative consequences of smoking?

d. If e-cigarettes are more addictive compared to regular cigarettes, would you expect the demand for e-cigarettes to be relatively more or less price elastic compared to the demand for regular cigarettes?

Two strategies are used by the government in the “War on Drugs.” One is to offer free treatment without punishment to drug addicts who ask for help while at the same time punishing drug users who are caught with drugs. The other is to not target drug users, but to attempt to intercept drugs at the border and actively attempt to arrest drug dealers and suppliers. Street crime is positively influenced by the price of drugs (higher drug price = more street crime). Assume either strategy yields an equal reduction in the quantity of drugs consumed, and the government must do one strategy or the other (not both).

6a) [4 pts] Using well-labeled supply and demand curves, show the effect on drug price (and street crime) and quantity from the combination the treatment of drug addicts and jail time for drug users.

6b) [4 pts] Using well-labeled supply and demand curves, show the effect on drug price (and street crime) and quantity from increased interception of drugs at the border and targeting of drug dealers.

6c) [2 pts] Which strategy is likely to result in less street crime?

What are the advantages and disadvantages of organizing a business as: one a partnership and two as a corporation?

What are the main tasks performed as a financial manager?

What will be the difference in SIL of the sounds from two loudspeakers, one with an efficiency of 2.1% and one with an efficiency of 10.3%. Assume that all other variables, including the electrical power supplied, are the same in the two cases.

An animal can be in one of two states A or B. An individual in state A will change to state B at an exponential rate α=1； an individual in stat B divides into two new individuals of type A at rate β=2.

At the beginning time 0, there is one cell, and it is type A. Estimate the expected number of cells of each type at time 5 and time 10.

In a Randomized Complete Block Design one of the two factors in the analysis is an extraneous variable (we are not directly interested in it) that is called a block. Explain the goal of including the extraneous variable in the analysis.

With one or two classmates, create an advertisement for an unsought product, such as a remedial reading or math course, cremation services, a first-aid kit, or the like. How can your ad turn an unsought product into one actually desired by consumers?

Two capacitors are identical, except that one is empty and the other is filled with a dielectric (κ = 4.69). The empty capacitor is connected to a 11.0-V battery. What must be the potential difference across the plates of the capacitor filled with a dielectric so that it stores the same amount of electrical energy as the empty capacitor?