According to the search model, the marginal benefit of acquiring information about a product is greater for expensive items than for cheap items

For a good such as a large screen HD television set, the income elasticity would likely be

A) negative. B) equal to zero. C) positive and less than one. D) positive and greater than one. E) undefined because large screen, HD TVs are bought by many consumers.

Suppose the quantity demanded of cigarette cartons falls by 5% when prices are increased by 100%. The price elasticity of demand for cigarettes is

A) elastic and equal to 0.05. B) inelastic and equal to 0.05. C) elastic and equal to 20. D) inelastic and equal to 20.