A long term goal of the NAFTA member countries is to integrate their economies into a single economic entity with a common currency as well as common trade policies and internal factor mobility

We calculate the price elasticity of demand as the

A) ratio of the percentage change in the quantity demanded to the percentage change in price. B) change in quantity divided by the change in price. C) ratio of the percentage change in the price to the percentage change in quantity. D) percentage change in the quantity demanded divided by the percentage change in income. E) equilibrium quantity divided by the equilibrium price.

A tax on cigarettes:

A. increases total surplus. B. increases efficiency in the market. C. like any tax, will always reduce surplus and efficiency in markets. D. will increase both total surplus and efficiency in the market.