Final answer:
To determine the annual cost of smoking one pack of cigarettes a day at $6.32 per pack, multiply the daily cost by the number of days in a year, which results in $2,306.80.
Step-by-step explanation:
The question asks us to calculate the annual cost of smoking one pack of cigarettes a day, given the average retail price of $6.32 per pack. To find the annual cost, we would multiply the daily cost of a pack by the number of days in a year.
The calculation would be: $6.32 per pack × 365 days = $2,306.80. Therefore, it would cost $2,306.80 per year for a person to smoke one pack of cigarettes a day.
Considering the economic impact, cigarette taxes (or 'sin taxes') significantly increase the price of cigarettes and can influence smoking behavior. The average state cigarette tax of $1.76 per pack and the federal tax of $1.01 per pack show that taxes constitute a substantial portion of the total cost of cigarettes, which may deter consumption. Discussions such as the 2015 proposal to raise the federal tax to $1.95 per pack reflect ongoing efforts to decrease smoking through fiscal policy.