maria37863711

maria37863711

Lv2

Pepperdine University

0 Followers
0 Following
0 Helped

ANSWERS

Published13

Subjects

Management1Marketing1Psychology1Communications1Information Technology1Biology1Economics7
Answer: Home Birth: Features: Comfortable Environment: Home births take place ...
Answer: Giving a presentation online comes with its own set of challenges and ...

CDC study says cigarette price hike would cut demand

ATLANTA (Reuters) -- A 50 percent increase in cigarette prices would cut overall consumption by 12.5 percent, with even greater declines in smoking among minorities and young adults, federal health experts said Thursday. The Centers for Disease Control and Prevention (CDC) said a statistical analysis of smoking habits since 1976 suggested that raising cigarette prices by 50 percent would result in about 60 billion fewer cigarettes smoked per year

Increasing the price of cigarettes by 50 percent would cut consumption by 7 percent among Caucasian-Americans, 16 percent among African-Americans, and almost 95 percent among Hispanic-Americans, the CDC's mathematical model predicted. "If there is a price increase, there will be much more of a decline in consumption among minority groups than there will be among Caucasian-Americans," said Michael Eriksen, director of the CDC's Office on Smoking and Health. The agency said that for sampling and statistical reasons, the estimated huge reduction in smoking among Hispanic-Americans was subject to greater error than the figures for Caucasian-Americans or African-Americans. The study was based on national cigarette price and sales figures and a National

Health Interview Survey of 355,246 people, almost one-third of them smokers, conducted between 1976 and 1993.

Younger Hispanic-Americans may be more likely to quit

"We really don't think a 50 percent price increase would eliminate smoking in Hispanic-Americans. It might virtually eliminate it in some younger Hispanic-Americans," said Terry Pechacek, a visiting scientist at the Office on Smoking and Health. The CDC said younger smokers would be more likely than older smokers to quit or reduce the amount they smoked because of price increases. The study predicted a 50 percent price increase would cause consumption to decline 29 percent among those aged 18 to 24. Researchers said price increases would also lead to declines in smoking among African-Americans and Hispanic-Americans above age 25. "The tobacco industry has been trying to scare the public, saying that a price increase would be unfair and hit minorities the hardest. In fact, it will actually have the greatest benefit from a public health standpoint in minority communities, particularly in the Hispanic community," Eriksen said.

'Price is only one weapon'

Smokers whose family incomes were at or below average were more than five times as likely as higher-income persons to quit smoking because of price hikes.

Researchers said that even after controlling for income and other factors, Hispanic-American and African-American smokers were more likely than Caucasian-American smokers to quit because of price increases. The study said a 10 percent price increase would prompt one-fourth of Hispanic smokers aged 18 to 24 to quit and reduce consumption among African-Americans aged 18 to 24 by 10 percent. Smoking would be expected to drop less than 1 percent among young Caucasian-Americans, the CDC said. Eriksen said the relative lack of price sensitivity among Caucasian-Americans indicated that "price is only one weapon to reduce smoking." "You need to combine price increases with regulations, with education and prevention programs, and cessation. Anyone element alone will fall short in achieving the type of change that's possible," he said.

a. According to the Center for Disease Control and Prevention (CDC) Study discussed in the CNN article above, what is the overall price elasticity of cigarettes? Based on the estimated elasticity value, is the demand for cigarettes elastic or inelastic? Does this accord with your expectations? Explain why.

b. What are the CDC estimates of price elasticity for Caucasian-Americans, African-Americans, and Hispanic-Americans?

c. Age seems to be a relevant factor for responsiveness to cigarette price increases. What is the estimated price elasticity for young people (aged 18 to 24)? Is this higher or lower than the overall price elasticity calculated in (part a) above? Does this accord with your expectations? Why or why not?

d. The CDC study also presents information for estimates of price elasticity for young Hispanic-Americans, young African-Americans, and young Caucasian-Americans. Calculate the elasticities for each of these three groups, and comment on whether they are elastic or inelastic.

e. Which of the factors that determine elasticity can be identified in the CDC study as being influential in causing differences in the observed elasticity across ethnic groups and age of consumers?

f. The government has taxed the cigarette industry quite extensively over the past decades. According to your analysis thus far, why would the government be so inclined to tax tobacco?

Answer: a. According to the CDC study, a 50 percent increase in cigarette pric...

What is the best way to prevent and reduce smoking? Briefly discuss.

Please read the article below to have a general idea about the topic.

Case Study: Deterring Young Smokers

As the U.S. Surgeon General warns on each pack of cigarettes, smoking can be hazardous to your health. Researchers estimate that smoking kills 440,000 Americans a year, 10 times the fatalities from traffic accidents. Smoking is the overwhelming cause of lung cancer, which is the top cancer killer among women. Four of five people with lung cancer die within three years. Smoking is also the leading cause of heart disease, emphysema, and stroke.

Thus, smoking imposes major health and economic costs. Policymakers try to reduce these costs by discouraging smoking, especially among young people. About one in four U.S. high school students were smokers in 2005, the same rate as in 2003. Each day, about 3,000 U.S. teens under 18 become regular smokers. Worldwide, an estimated 100,000 teens become regular smokers each day.

One way to reduce youth smoking is to prohibit the sale of cigarettes to minors. A second way is to raise the price through higher cigarette taxes. The amount by which a given price hike reduces teen smoking depends on the price elasticity of demand. This elasticity is higher for teens than for adults. Why are teenagers more sensitive to price changes than adults?

First, recall that one factor affecting elasticity is the importance of the item in the consumer's budget. Because teen income is relatively low, the share spent on cigarettes usually exceeds the share spent by adult smokers.

Second, peer pressure shapes a young person's decision to smoke more than an adult's decision to continue smoking (if anything, adults face negative peer pressure for smoking). Thus, the effect of a higher price gets magnified among young smokers because that higher price also reduces smoking by peers. With fewer peers smoking, teens face less pressure to smoke.

And, third, young people not yet addicted to nicotine are more sensitive to price increases than are adult smokers, who are more likely to be already hooked.

The experience from other countries supports the effectiveness of higher cigarette taxes in reducing teen smoking. For example, a large tax increase on cigarettes in Canada cut youth smoking by two-thirds. Another way to reduce smoking is to change consumer tastes through health warnings on packages. In Canada, these warnings include photos showing how smoking can affect the brain, teeth, and gums, and a wilted cigarette depicts male impotence.

In Australia, labels show gangrenous limbs, underweight babies, cancerous mouths, and blind eyes. Belgium adds corpses to the picture.

In California, a combination of higher cigarette taxes and an ambitious awareness program contributed to a 5 percent decline in lung cancer among women, even as it rose 13 percent in the rest of the country. (As of 2007, state taxes varied from a low of 7 cents per pack in South Carolina to a high of $2.58 in New Jersey.)

More generally, the message about the dangers of smoking along with the higher cost of cigarettes has had an effect over time. Only about 20 percent of American adults now smoke, down from more than half in the 1960s.

According to the U.S. Centers for Disease Control and Prevention, each pack of cigarettes sold in the United States costs society $7.18 in higher health care costs and in lost worker productivity. The added cost exceeds $150 billion a year, which works out to be about $3,400 per smoker per year.

SOURCES

Hutchinson, ĀœSmoke Signals: Adolescent Smoking and School Continuation,Ā NBER Working Paper 12462, (August 2006); and Hana Ross and Frank Chaloupka, ĀœThe Effects of Public Policies and Prices on Youth Smoking,Ā : John Tauras, ĀœAn Empirical Analysis of Adult Cigarette Demand,Ā Eastern Economic Journal, Vol. 31, No. 3 (Summer 2005): pp. 361Ā“375

Answer: To prevent and reduce smoking, several effective strategies can be emp...
Answer: Suppose there is a bill to increase the tax on cigarettes by $1 per pa...
Answer: The combined measures of increasing the tax on cigarettes by $1 per pa...
Answer: The consumer tax burden, also known as the incidence of the tax, can b...
Answer: To determine the increase in the price of cigarettes needed to decreas...
Answer: Certainly, when selecting a topic for your public speaking assignment,...
Answer: The combined measures of increasing the tax on cigarettes by $1 per pa...
Answer: Preparing for a final online presentation requires careful planning an...
Answer: Plant cells, animal cells, and prokaryotic cells share some common str...

You have decided to start a savings account because you would like to go on holiday with a friendĀ 
and you need to keep track of your deposits, interest paid, balance and tax liabilities. Your goal isĀ 
to save for three months.
You have spent some time comparing various savings options to get the most growth out of yourĀ 
savings. That means the higher the interest rate, the more your money will increase. The savingsĀ 
account you have chosen offers the best interest rates which are based on a sliding scale on theĀ 
balance of your account.Ā 
Definition: A sliding scale is a system in which the interest rate which is paid changes because ofĀ 
other conditions. For example:Ā 
ā€¢ The more money you earn, the more tax you must pay;Ā 
ā€¢ The more money you invest in savings, the higher interest rate you will receive.
VALUE OF SAVINGS ACCOUNT BALANCE INTEREST RATEĀ 
(per month)
Less than R2 000 2%
Greater than or equal to R2 000 but lessĀ 
than R5 000
4%
Greater than or equal to R5 000 6%
The South African Revenue Services (SARS) will deduct 25% tax of the interest paid into yourĀ 
account each month (from the profit you make every month), i.e., the interest paid to you by theĀ 
bank.
Write the pseudocode for the following scenario.Ā 
The input into the program will be:
ā€¢ Account number (numeric)
ā€¢ Amount of the deposit (numeric)
ā€¢ Month (numeric)
22; 23 2023
Ā© The Independent Institute of Education (Pty) Ltd 2023
Page 4 of 7
The program must do the following:
ā€¢ Ask the user to enter the account number twice and compare the two account numbers toĀ 
each other in order to verify that the correct account is being accessed. This is to ensureĀ 
you will make your deposit into the correct account. If the two account numbers enteredĀ 
do not match, then display an appropriate message and ask the user to re-enter the twoĀ 
account numbers again.Ā 
ā€¢ The minimum monthly deposit is R500. Check that the deposited amount is R500 or more.Ā 
If it is less than R500, then the program must prompt you to re-enter an amount to depositĀ 
until you specify an amount of R500 or more.
ā€¢ Use a case structure to convert the numeric month to a string month name.Ā 
o E.g., 1 will be January and 2 will be February, etc.Ā 
ā€¢ Check the account balance against the range of values to determine the interest rate (fromĀ 
the table above).
ā€¢ Calculate the interest payable and add the interest payable to your account balance.
ā€¢ Calculate the tax due to SARS (25%) and deduct this from your account balance.Ā 
ā€¢ Print out a balance statement each time you make a deposit so you can keep track of yourĀ 
account balance. The balance statement must include the following information:Ā 
o Opening Balance;Ā 
o Deposit;Ā 
o Interest Earned;Ā 
o Tax due to SARS;
o Closing Balance

Answer: FUNCTION calculateInterestRate(accountBalance) IF accountBalance < ...

Weekly leaderboard

Start filling in the gaps now
Log in