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.

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Definitions:

Rectangles

A four-sided flat shape where every angle is a right angle and opposite sides are parallel and equal in length.

Historical Episode

A significant event or series of events in the past that has a substantial impact on the present or future.

Circular Flow Diagram

A graphical representation depicting the flow of products, services, and financial resources in a cyclical pattern between consumers and businesses within the economy.

Systematic Thinking

An approach to problem-solving that involves breaking down complex issues into their components to understand the relationships and effects systematically.