The Constant Price Elasticity of Demand for Cigarettes Has Been

question 20

Multiple Choice

The constant price elasticity of demand for cigarettes has been estimated to be -0.5.To reduce smoking by 50%,approximately how much tax needs to be added to a $1 pack?

• A) $1.00
• B) $2.00
• C) $3.00
• D) $0.50
• E) $4.00

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Definitions:

Resource Partitioning

Evolutionary process whereby species become adapted in different ways to access different portions of a limited resource; allows species with similar needs to coexist.

Prey Defense

Strategies and adaptations developed by prey animals to evade, deter, or escape from predators.

Camouflage

Camouflage is a strategy used by animals, plants, and other organisms to blend in with their surroundings to hide from predators or to ambush prey.

Chemicals

Substances with distinct molecular compositions that are used in or produced by chemical processes.