Q1. According to a study of U.S. cigarette sales between 1955 and 1985, when the price of cigarettes was 1% higher, consumption would be 0.4% lower in the short run and 0.75% lower in the long run (Becker et al., 1994)

Q2. Briefly explain why, in economic terms, when the wage rate increases we sometimes see the number of hours worked by individuals decrease now.

Q3. Show why the following statement is not correct, 'the way to make the most profit is to sell as much output as possible' explain your answer under the following subtitles: perfect competition, monopolistic competition, oligopoly and monopoly.