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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