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Unformatted text preview: 0.4. if a pack of cigarettes currently costs $8 and the government want to reduce smoking by 20 percent, by how much should it increase the price? b. If the government permanently increases the price of cigarettes, will the policy have a greater effect on smoking one year from now or five years from now? c. Studies also find that teenagers have higher price elasticity than do adults. Why might this be true? MUST KNOW QUESTION BEHIND BOOK!...
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- Spring '08