Many US States Have Minimum Price Laws for Cigarettes

question 23

Essay

Many U.S. states have minimum price laws for cigarettes. Assume that the demand equation for cigarettes is Q^D = 4,000 - 300P and the supply equation is Q^S = -1,000 + 200P, with quantity in thousands of packs. The number of cigarette packs actually sold when a binding price floor of $12 is applied to this market will be _____.

---

Definitions:

Nonpharmacologic

Pertaining to methods of treatment that do not involve the use of drugs or medications.

Pain Management

The discipline concerned with the relief of pain and improvement in the quality of life for those living with pain through various therapies and treatments.

Migraine Headaches

A type of headache characterized by intense pulsing or throbbing pain, usually on one side of the head, often accompanied by nausea, vomiting, and sensitivity to light and sound.

Cathartics

Substances that accelerate defecation, commonly used to treat constipation by stimulating bowel movements.