MacCoun and Reuter Calculate That for Which of the Following

question 8

Multiple Choice

MacCoun and Reuter calculate that for which of the following substances is the elasticity index the greatest-that is, there is the greatest decrease in purchases, given a 1 percent increase in price?

• A) heroin.
• B) cigarettes.
• C) marijuana.
• D) MacCoun and Reuter argue that calculating the elasticity index is impossible because such an outcome as drug purchases, given price, cannot be known.
• E) none of the above.