Assume That Cigarettes Sell for $7 Per Pack in New

question 185

Multiple Choice

Assume that cigarettes sell for $7 per pack in New Jersey and $3 per pack in South Carolina, and New Jersey taxes cigarettes at $3.00 per pack and South Carolina taxes cigarettes at $0.10 per pack. How might cigarette sellers respond to the after-tax price differential between the two states?

• A) Cigarette sellers will increase the supply of cigarettes to New Jersey and decrease the supply of cigarettes to South Carolina.
• B) Cigarette sellers will decrease the supply of cigarettes to New Jersey and increase the supply of cigarettes to South Carolina.
• C) Cigarette sellers will decrease the supply of cigarettes to both New Jersey and South Carolina.
• D) Cigarette sellers will increase the supply of cigarettes to both New Jersey and South Carolina.

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Definitions:

Subgroups

Distinctive smaller groups within a larger group or organization, often characterized by shared interests or traits.

Subjective Approach

An approach where the decision maker looks at the scores received by the various applicants on predictors, subjectively evaluates all of the information, and comes to an overall judgment.

Clinical Approach

A methodology in healthcare and psychology that involves direct observation, treatment, and interaction with clients or patients in a therapeutic or medical context.

Multiple Hurdle Approach

A selection process where candidates must pass through several distinct rounds of assessment before being considered for a position.