When the Price of Cigarettes Decreases by 20 Percent,the Quantity

question 91

Multiple Choice

When the price of cigarettes decreases by 20 percent,the quantity demanded increases by 12 percent.The price elasticity of demand for cigarettes is __________,making cigarettes an ____________ product (in this example) .

• A) 0.6; elastic
• B) 1.7; inelastic
• C) 0.6; inelastic
• D) 1.7; elastic
• E) 2.6; elastic