Studies Indicate That the Price Elasticity of Demand for Cigarettes

question 170

Multiple Choice

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6. According to the midpoint method, the government policy should have reduced smoking by

• A)30 percent.
• B)40 percent.
• C)80 percent.
• D)250 percent.

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Definitions:

Trades Disputes Act

Legislation designed to regulate labor disputes, including strikes and collective bargaining, ensuring they are conducted within legal frameworks.

Great Britain

is a geographical term that refers to the island located northeast of Ireland and northwest of France, comprising the main territory of the United Kingdom—England, Scotland, and Wales.

Immunity

In the context of labor relations, immunity refers to legal protections provided to unions or workers engaged in certain sanctioned activities, such as strikes, safeguarding them from certain legal repercussions.

Illegal

Acting against or outside of the laws or regulations that govern behavior in society.