Which of the Following, If True, Would Most Effectively Undermine

question 108

Multiple Choice

Which of the following, if true, would most effectively undermine the argument that raising cigarette taxes reduces the number of people who smoke cigarettes?

• A) The demand for cigarettes is relatively inelastic.
• B) The demand for cigarettes is relatively elastic.
• C) The supply for cigarettes is relatively inelastic.
• D) The supply for cigarettes is relatively elastic.

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Definitions:

Demand Function

A mathematical expression that specifies the quantity of a good or service purchased at various prices.

Income

The total money received by an individual or household from various sources like wages, investments, and benefits, over a specified period, often used to fund expenditures.

Price

The price one must pay to obtain a good, service, or asset.

Claret

A term often used in Britain to refer to red Bordeaux wine.