Would You Expect a Tax on Cigarettes to Be More

question 78

Multiple Choice

Would you expect a tax on cigarettes to be more effective at discouraging consumption over the long run or the short run?

• A) Long run because demand becomes more elastic over time
• B) Long run because demand becomes less elastic over time
• C) Short run because demand becomes more elastic over time
• D) Short run because demand becomes less elastic over time

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Definitions:

Five-period Moving Average

A type of moving average that calculates the average of the most recent five periods or intervals, used in time series analysis to smooth data.

Time Periods

Segments or intervals into which time is divided for the purpose of analysis, observation, or measurement.

Smoothing Constant

A parameter used in exponential smoothing models to apply different weights to past observations, influencing how smooth the resulting time series will be.

Exponentially Smoothed

A technique used in time series analysis to smooth data points by assigning exponentially decreasing weights over time.