What Does the Following Statement Imply About Price Elasticity of Demand

question 83

Multiple Choice

What does the following statement imply about price elasticity of demand? "Government tries to reduce cigarette consumption with an extra 50 cent tax per pack.Policy raises government revenue but fails to curb smoking."

• A)demand for cigarettes is elastic
• B)demand for cigarettes is inelastic
• C)elasticity of demand for cigarettes is equal to one
• D)elasticity of demand for cigarettes is close to infinity
• E)elasticity of demand for cigarettes equals 0.5

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Drug Symptoms

The physical or mental effects that indicate the influence of a drug on the body.

Larger Dose

Refers to administering a higher quantity of a substance, typically used in the context of drug dosage or experimental treatments in research.

Retrospective Processing

The continual assessment of contingencies, which can lead to a reevaluation of prior conditioning of a conditioned stimulus (CS) with an unconditioned stimulus (UCS).

Mackintosh's Attentional

A theory explaining how the predictability of a stimulus influences its attentional control in associative learning.