Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN: 9781947172364
Author: Steven A. Greenlaw; David Shapiro
Publisher: OpenStax
Textbook Question
100%
Book Icon
Chapter 18, Problem 27P

Say that the government is considering a ban on smoking in restaurants in Tobaccoville. There are 1 million people living there, and each would benefit by $ 2 00 from this smoking ban. However, there are two large tobacco companies in Tobaccoville and the ban would cost them $5 million each. What are the proposed policy’s total costs and benefits? Do you think it will pass?

Blurred answer
Students have asked these similar questions
How has legalizing recreational marijuana affected Colorado's economy?
What public policy approach would be most reasonable to protect consumers from harmful products? How might market and economic forces play a role in protecting consumers?
If the governments efforts to reduce demand are effective, what happens to price and usage of marijuana? And what would happen to the price and usage if the government efforts to reduce supply are effective? State and explain an economic tool  government can use to address the increase in usage after legalization of drugs.

Chapter 18 Solutions

Principles of Economics 2e

Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
EBK HEALTH ECONOMICS AND POLICY
Economics
ISBN:9781337668279
Author:Henderson
Publisher:YUZU