One Reason Why the Price Elasticity of Demand for Cigarettes

question 100

Multiple Choice

One reason why the price elasticity of demand for cigarettes is large for young smokers is that

• A) they have large discretionary incomes
• B) the price of cigarettes increased recently
• C) they are no longer permitted to smoke in public
• D) cigarette advertising on television has been banned
• E) the proportion of income a young smoker spends on cigarettes is usually quite large

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Definitions:

Parol Evidence Rule

A legal rule in contract law that prevents the admission of external evidence intended to alter or contradict the terms of a written agreement.

Merger Clause

A clause in a written agreement within the statute of frauds which states that the written agreement accurately reflects the final, complete version of the agreement.

Parol Evidence Rule

A legal doctrine stating that oral or extrinsic evidence cannot be used to contradict, vary, or add to the terms of a written contract.

Prenuptial Agreement

A legal document entered into before marriage, specifying the division of assets and financial arrangements in the event of a divorce.