Price per pack $ 1 $ 150 $ 2 $ 250 $ 3 $ 3.50 $ 4.00 $ 4.50 $ 5.00
Quality (packs per day) 100 $ 90 $ 80 70 60 50 40 30 20
suppose smoking increases extern cost valued at 50 cents per pack If a tax of $ 1per pack is imposed to a $ 2 market price How many packs will be consumed ( packs per day) ?
Is this rate too high, low, or the social optimal rate if consumption ? is it low, high, or the social optima rate