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Scare tactics lift prices for smokers

Read the article Scare tactics lift prices for smokers and then answer the questions below. You can either read the article in the window below or you can follow the previous link to read the article in a separate window.


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Question 1

Given that consumption will likely continue to decline in the mid-single digit range, pricing is necessary to drive top-line growth. Using information from the article, explain this statement.

Question 2

Using diagrams, as appropriate, illustrate the changes that have taken place in the market for cigarettes.

Question 3

Assess the effectiveness of indirect taxation as a tool to improve public health by reducing smoking.

Question 4

Discuss the factors that may lead to a notable shift in demand "elasticity".