The Price Elasticity of Demand for Cigarettes by Adults Is

question 42

Multiple Choice

The price elasticity of demand for cigarettes by adults is -1.3 while for young smokers it is -0.4. A tax on cigarettes would lead to which of the following effects?

• A) a smaller reduction in the quantity of cigarettes demanded by younger smokers than by older smokers
• B) the same reduction in the quantity of cigarettes demanded by both age groups
• C) a larger reduction in the quantity of cigarettes demanded by younger smokers than by older smokers
• D) no impact on the quantity of cigarettes demanded by either group
• E) not enough information to predict the impact

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Definitions:

Hypoxemia

A condition characterized by an abnormally low concentration of oxygen in the blood.

Hemoglobin Levels

The concentration of hemoglobin in the blood, indicative of the blood's ability to carry oxygen.

Blood PH

A measure of acidity or alkalinity in the blood, with a normal range usually between 7.35 and 7.45.

Incentive Spirometry

A respiratory therapy device used to help patients improve the functioning of their lungs by encouraging voluntary deep breathing.