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:

Pituitary

A small, pea-sized gland located at the base of the brain that produces hormones influencing various bodily functions, including growth and reproduction.

Adrenals

Glands located above the kidneys that produce hormones such as adrenaline and cortisol, which regulate stress response and other vital functions.

Hypothalamus

A region of the brain responsible for producing hormones that regulate body temperature, hunger, moods, and the release of hormones from other glands.