Suppose the Government Wants to Discourage the Use of Cigarettes

question 64

Multiple Choice

Suppose the government wants to discourage the use of cigarettes. If it imposes a tax on cigarettes, the equilibrium quantity falls the most when the elasticity of demand equals

• A) 2.00.
• B) 1.00.
• C) 0.50.
• D) 0.

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Definitions:

Milliseconds

A unit of time equal to one thousandth of a second, commonly used to measure the timing of very quick events.

Characters

The people or beings in a story, play, or other literary work who carry out the action and dialogue, contributing to the work's plot and theme.

Jerky Movements

Rapid, sharp actions or motions that are not smooth, often involuntary and without a steady rhythm.

Scanning

The process of systematically looking over a wide area or examining information carefully in search of something specific.