Figure 6-4 -If the Elasticity of Demand for Cigarettes Is 0.4, Then

question 91

Multiple Choice

Figure 6-4
-If the elasticity of demand for cigarettes is 0.4, then an increase in the price of a pack of cigarettes from $5.00 to $6.00 would reduce quantities demanded by about

• A)7 percent.
• B)40 percent.
• C)42 percent.
• D)220 percent.

---

Definitions:

Round

Having a shape or cross-section that is circular or nearly circular; often used to describe objects or shapes.

Close Objects

Objects that are situated near to one another in spatial terms.

Distant Objects

Objects that are far away from the observer, often requiring visual aids like telescopes to be seen clearly or understood.

Pupils

The black circular openings in the center of the iris of the eye, which regulate the amount of light that enters the eye.