would cigarette industry be a good industry for this assignment?
2007-09-07 14:19:19 · 2 answers · asked by Anonymous in Social Science ➔ Economics
The price of cigarettes is manipulated by state taxes, that varies from state to state and is changed frequently, so the data should be available. The increase in the tax rate relative to increases in revenue allows you to estimate the price elasticity for each state and increase.
http://tobaccofreekids.org/research/factsheets/pdf/0098.pdf
However the price changes are not the result of the economic forces, so whether or not it is a good choice depends on the details of your assignment.
If cigarettes don't meet the requirements you might look at corn, or milk because they are commodities that have undergone large price changes lately. It is best to chooses a commodity because when quality is a factor in pricing the data becomes very complicated.
2007-09-07 19:40:33 · answer #1 · answered by meg 7 · 0⤊ 0⤋
probably not because thats all due to state taxes..
id say real estate
2007-09-07 14:27:27 · answer #2 · answered by hi_iduntcyber_doyou 5 · 0⤊ 0⤋