In a recent article, two economists estimated that the 37.5% increase
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.
ANSWER
B
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