If the Demand for Cigarettes Is Highly Inelastic, This Indicates

question 169

Multiple Choice

If the demand for cigarettes is highly inelastic, this indicates that

• A) higher cigarette prices will increase the demand for cigarettes.
• B) the price elasticity coefficient of cigarettes exceeds 1.
• C) the price elasticity coefficient of cigarettes equals 1.
• D) the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.

---

Definitions:

Calcium Carbonate

A chemical compound, CaCO3, found in rocks such as limestone, chalk, and marble, and is the main component of pearls and the shells of marine organisms.

Sedimentary Rock

Rock formed by the accumulation and compaction of sediment, which can include minerals, organic matter, or the remains of organisms.

Dissolution

The process by which a solid, liquid, or gas forms a solution in a solvent, often related to the disintegration of minerals in water.

Gray Limestone

A sedimentary rock composed mainly of calcium carbonate (CaCO3), typically characterized by its gray color, used in building and as an aggregate.