According to One Study, the Price Elasticity of Demand for Cigarettes

question 442

Multiple Choice

According to one study, the price elasticity of demand for cigarettes is 0.25. To decrease the consumption of cigarettes by 8 percent, a tax on cigarettes must raise the price of cigarettes by

• A) 32 percent.
• B) 25 percent.
• C) 2 percent.
• D) 3.1 percent.

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Definitions:

Personality

The unique set of emotional, thought, and behavioral patterns that define an individual’s personal style and influence their interactions with the environment.

Extraversion

A personality trait characterized by outgoingness, high energy, and an active engagement with the external world.

Neuroticism

A pattern in someone's behavior identified by nervousness, trepidation, instability in emotions, apprehensiveness, covetousness, exasperation, rivalry, and being solitary.

Conscientiousness

A personality trait marked by thoroughness, carefulness, and the propensity to plan and organize tasks effectively.