Suppose That You Have Estimated That Demand for Cigarettes Among

question 11

Multiple Choice

Suppose that you have estimated that demand for cigarettes among adults is different from the demand for cigarettes among teenagers.The demand curves that you have estimated are shown below:
Suppose the current price for a pack of cigarettes is $3.00.A $1.00 per pack tax on cigarettes has been proposed.
This proposed tax will decrease the number of cigarettes smoked

• A) to a greater extent among adults than among teenagers.
• B) to a greater extent among teenagers than among adults.
• C) equally among teenagers and among adults.
• D) only if demand is much more elastic than you have estimated.

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Definitions:

Sensation

The process by which our sensory receptors and nervous system receive and represent stimulus energies from our environment.

Extrasensory Perception (ESP)

A supposed ability of the human mind to acquire information without the use of the known (sensory) channels of communication.

Photoreception

The biological process by which organisms detect and respond to light, primarily through specialized light-sensitive cells.

Precognition

The purported psychic ability to see events in the future before they happen, outside the boundaries of known physical mechanisms.