Exercise 2.8: MADD Beer Tax. Recall the example "Beer Prices and Highway Deaths" from the chapter. The organization Mothers Against Drunk Driving (MADD) has a goal of reducing the number of highway deaths among young adults by 39 percent. Assume that the number of highway deaths for young adults is proportional to their beer consumption. By what percent must the price of beer increase to meet the MADD target?
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By the problem assumption, D is proportional to beer consumption, so the percent change in D equals the percent change in consumption. Show more…
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