If the Demand for Cigarettes Is Price Inelastic

question 55

Multiple Choice

If the demand for cigarettes is price inelastic

• A) people will pay any price to smoke.
• B) an increase in the price of cigarettes would have no effect on the quantity demanded of cigarettes.
• C) a fall in cigarette prices would reduce people's expenditures for cigarettes.
• D) a decrease in the price of cigarettes would decrease the demand for cigarettes.
• E) as the price is reduced, the percentage increase in quantity demanded must be greater than the percentage decrease in price.

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Definitions:

Codes of Ethics

A set of principles and standards designed to guide the behavior and decision-making of members within a profession or organization.

Traditional Entrepreneurs

Individuals who establish and manage businesses for the principal purpose of profit and growth, typically following conventional business models.

Social Change

The alteration over time in behavior patterns, cultural norms, and social structures within a society, often driven by collective action or technological innovation.

Ethical Leadership

Leadership that is directed by respect for ethical beliefs and values, and for the dignity and rights of others.