In a recent article, two economists estimated that the 37.5% increase in price that would result from a 75 cent tax increase on cigarettes would lead to a decrease in smoking among college students of 30%
What can you conclude about the demand for cigarettes among college students? A) It is price elastic.
B) It is price inelastic.
C) It is unit elastic.
D) It is perfectly inelastic.
B
Economics
You might also like to view...
Depository institutions are good at minimizing
A) the costs of monitoring borrowers. B) risky borrowers. C) liquidity. D) all of the above.
Economics
An increase in the price of labor used to produce good Y will lead to
A) an increase in the market clearing price of good Y. B) an increase in the supply of good Y. C) a decrease in the demand for good Y. D) an increase in the demand for good Y.
Economics