The Supply Curve and the Demand Curve for Cigars Are

question 156

Multiple Choice

The supply curve and the demand curve for cigars are straight lines.Suppose the equilibrium quantity in the market for cigars is 1,000 per month when there is no tax.Then a tax of $0.50 per cigar is imposed.The effective price paid by buyers increases from $1.50 to $1.90 and the effective price received by sellers falls from $1.50 to $1.40.The government's tax revenue amounts to $475 per month.Which of the following statements is correct?

• A)After the tax is imposed, the equilibrium quantity of cigars is 900 per month.
• B)The demand for cigars is more elastic than the supply of cigars.
• C)The deadweight loss of the tax is $12.50.
• D)The tax causes a decrease in consumer surplus of $380.

Recognize the strategies retailers adopt at different stages of the retail life cycle to maximize profits and market share.

Differentiate between the types of merchant wholesalers and their roles in the distribution channel.

Understand the impact of data analytics on retailing strategy and customer service.

Comprehend the complementary roles of different communication and delivery channels in multichannel retailing.

---

Definitions:

Flaming

The act of posting hostile or insulting messages online, typically in forums or comment sections, to provoke or offend.

Business Correspondence

The exchange of written communication between businesses or between a business and its customers, partners, or vendors.

Tweets

Short messages or posts made on the social media platform Twitter, limited to 280 characters, often used for sharing news, opinions, or updates.

Facebook Posts

Short updates or messages published on the Facebook platform by users, sharing personal thoughts, news, or information.