Suppose Consumers of Cigarettes Can Be Classified into Two Groups

question 67

Multiple Choice

Suppose consumers of cigarettes can be classified into two groups: heavy users and light users.Heavy users purchase more cigarettes and are less sensitive to price changes relative to light users.To determine whether a heavy user suffers a greater loss of consumer surplus than a light user does when the price of cigarettes increases,one would need to know

• A) each group's average income.
• B) the actual quantities purchased by each.
• C) each individual's price elasticity of demand.
• D) no additional information.

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