If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $5.00 to $6.00 would reduce quantities demanded by about
A. 7 percent.
B. 40 percent.
C. 42 percent.
D. 220 percent.
Answer: A
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The situation in which one party to a transaction takes advantage of knowing more than the other party to the transaction is known as asymmetric information
Indicate whether the statement is true or false
The highest fifth of all families receive approximately ____ of the distribution of annual money income among families
a. 5 percent b. 10 percent c. 25 percent d. 50 percent
Savings deposits are included in
a. M1 but not M2. b. M2 but not M1. c. M1 and M2. d. neither M1 nor M2.
A high tariff on imported good X might reduce domestic employment in industry Y if:
A. X is an input used domestically in producing Y. B. X and Y are substitute goods. C. X is an inferior good. D. Y is an inferior good.