The price elasticity of demand for cigarettes by adults is -1.3 while for young smokers it is -0.4 . A tax on cigarettes would lead to which of the following effects?
a. a smaller reduction in the quantity of cigarettes demanded by younger smokers than by older smokers
b. the same reduction in the quantity of cigarettes demanded by both age groups
c. a larger reduction in the quantity of cigarettes demanded by younger smokers than by older smokers
d. no impact on the quantity of cigarettes demanded by either group
e. not enough information to predict the impact
C
Economics
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Refer to Figure 13-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Economics
There were large decreases in productivity during
A. the 1990s and early 2000s. B. the late 1980s. C. the late 1970s and the 2010s. D. the 1950s and 1960s.
Economics