Evaluate the social economic welfare changes arising from a government tax on production of cigarettes in Hong Kong. Hypothetical 2021 data are provided as follows: The average price of cigarette is HK$60 per packet and the total quantity of cigarettes consumed per month on average is 20,852,000 packets. The per-unit tax imposed on the domestic cigarette production is HK$18 per pack (equivalent to 30% of the price for a packet of cigarette). The local demand for cigarette is price inelastic (which is assumed to be 0.1, 0.5 or 0.9). The supply is price elastic (which is assumed to be 1.5, 2.0 and 2.5). a. Calculate and tabulate all your empirical results using The Microsoft Excel Spreadsheet. The application of Excel for the computations will be taught and demonstrated in the tutorial class. Write up your final term paper by following the recommended format (which will be discussed in one of your tutorial classes).

Evaluate the social economic welfare changes arising from a government tax on production of cigarettes in Hong Kong. Hypothetical 2021 data are provided as follows: The average price of cigarette is HK$60 per packet and the total quantity of cigarettes consumed per month on average is 20,852,000 packets. The per-unit tax imposed on the domestic cigarette production is HK$18 per pack (equivalent to 30% of the price for a packet of cigarette). The local demand for cigarette is price inelastic (which is assumed to be 0.1, 0.5 or 0.9). The supply is price elastic (which is assumed to be 1.5, 2.0 and 2.5). a. Calculate and tabulate all your empirical results using The Microsoft Excel Spreadsheet. The application of Excel for the computations will be taught and demonstrated in the tutorial class. Write up your final term paper by following the recommended format (which will be discussed in one of your tutorial classes).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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