Marcus Says That He Would Smoke One Pack of Cigarettes

question 54

Multiple Choice

Marcus says that he would smoke one pack of cigarettes each day regardless of the price.If he is telling the truth,Marcus's

• A)demand for cigarettes is perfectly inelastic.
• B)price elasticity of demand for cigarettes is infinite.
• C)income elasticity of demand for cigarettes is 0.
• D)More than one of the above is correct.

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Definitions:

Residence Acquisition Debt

Mortgage debt incurred in acquiring, constructing, or substantially improving a principal residence, which is secured by the residence.

Fully Deductible

Expenses that can be subtracted in full from taxable income, reducing the total amount on which tax is calculated.

Adjusted Gross Income

involves a rephrased definition: it's the measure of income calculated from your gross income and allows for certain deductions, but before itemized or standard deductions.

Charitable Contributions

Donations or gifts made to qualifying nonprofit organizations, often eligible for a tax deduction.