chapter 6 problem 4 Suppose consumers buy 30 million packs o

chapter 6 problem 4- Suppose consumers buy 30 million packs of cigaretts per month at a price of $4 per pack. If a $1 tax is added to that price, a)By what percentage does price change? b)By what percentage will cigarette sales decline in the short run? c)According to Gary Becker, by how much will sales decline in the long run? From bookThe Micro Economy Today 13e.

a) increase in price = 1/4 = 25%

b) (See Table 20.1 for a clue.) 40%