If higher taxes cause a decrease in the amount of tobacco that smokers consume, or they quit altogether, health care costs and sick days will decrease. People who stop using tobacco can usually expect to live longer than those who do not quit, can expect to live longer and be less of a burden on the health care system. They also have a reduction in health care premiums and home owner premiums also decrease due to lack of property damage from careless smokers. With decreased sales in tobacco, farmers will allocate farm land that was previously used for tobacco to grow other crops. But higher taxes also have negative effects such as smokers buying cheaper brands of tobacco, smuggling and creating black markets.
Mechanically how is your strategy different than your best strategies in 4a Strategy 6 : Inventory Management in Price Cutoffs = 10 could be improved with a small tweak on the preloaded strategy. The cutoff could be reduced from 10 to say 5-6. Why does the change in 5a work better? With the tweaked strategy 6, the reduced cut-off will ensure that the inventory be cut down quickly when the overnight volatility and order processing costs are relatively high. The bid-ask spread is also a cost to the dealer.
The real question that needs to be asked is: Which engine is better in the long run and how fast can the engines be put to use? Electric powered vehicles have a lot of promise, such as zero emissions along with plenty to save at the gas stations that people will not have to visit anymore, but at what cost? Building an all new electric vehicle will cost the manufacturer about 20,000 dollars alone. With that price for manufacturers, one can expect the price on the lot would be over 25,000 or more. The Nissan Leaf is expected to price at 30,000 dollars (Winder), which would take years for a consumer to gain money back on it through savings on gasoline.
It could therefore be said that an increase in the incomes of consumers could cause the bus operators revenue to decrease due to a fall in demand. This would indicate that the bus driver should close the service. Price elasticity of supply measures the proportionate response to changes in quantity supplied to a proportionate price change. A price elasticity of supply value of +1.15 means that the bus service has a more than proportionate response in supply to a change in price. The positive sign basically shows that higher prices will
If the company continues to loose billions of dollars year after year adjustments need to be made somewhere, so the concentration should be put in the plants that are successful and slow production in the lagging plants or just simply close down. Second I would choose to reduce the SUV and truck lines because of the high gas prices throughout the country simply because the smaller cars would be more gas efficient, more cost efficient, and a lot of money being lost through the lack of being able to sell the expensive SUV’s which also doubles in cost to fill up and drive on a daily basis. Most Americans are buying the smaller cars because of the recession or the public opinion that we are in a recession. Third, would be to go ahead and sell the premium automobile group to somebody that would be able to make use and profit off of the lack of sales year after year. Cars like Jaguar and especially Aston Martins which are one of the most expensive cars in the world, don’t really sell on a large scale in the US except for the wealthy percentage of the population, so selling the premium automobile group should be a good business decision especially since the PAG group doesn’t fit the way Ford intended their business to be operated.
They typically get 48 to 60 mpg that incredible gas mileage helps cover some of the car’s higher upfront cost. According to Edmunds.com’s “True Cost to Own” analysis, a 2012 Toyota Prius that costs $22,000 will cost $32,760 over five years. Compare that to the most fuel-efficient gas vehicle in the same class, the Hyundai Elantra. The Elantra costs a mere $14,120 at the most, but in five years, your costs will rise to $32,236, thanks to added gas and maintenance. Plus, hybrids are larger and a little sturdier than fuel-efficient gas cars, and therefore provide more storage space and rank higher on crash-safety tests.
Is the price elasticity of gasoline more elastic over a shorter or a longer period of time? Explain. It would be over a shorter period of time due to make sure policies set in place by the government are achieved. Consumption of gasoline has also decreased as people have increased their awareness to other means of car energy such as hybrids. 3.
• If there are many petrol stations close by the petrol companies will find that there demand is elastic. Increasing price could lead to a loss of market share. • However, if you are the only petrol station in a rural area or if you are a petrol station on a motorway, you have a lot more market power. A motorist is not going to exit the motorway just to avoid paying motorway prices. Therefore, in these locations the petrol stations have more market power, consumers less choice, demand inelastic; and this is why petrol is more expensive.
Changes in the prime rate may affect the whole economy. For example, an increase may result in fewer consumers taking auto loans, which in turn may cause a slowdown in the automobile industry. Also, when interest rates go up it could possibly affect the casino and gambling industry too. Interest rates affect the way people spend their money. When interest rates rise, the casino industry may go down because people will not be able to spend money for leisure activities.
The purpose of this essay is to see if government should add more tax to fast food to control obesity. This will help hospitals get more money to help solve cancer, make obese people smaller, let people live longer, spend less money, and allows people to travel better by adding more tax. When people eat junk food they are likely to die faster. If we go to fast food restaurants we are more likely to become obese. If government adds more tax people would spend less money.