Multiple Choice
The price elasticity of cigarettes has been estimated as -0.5.The government has decided that they want to decrease the amount that people in the United States smoke by 10%.It follows that they must institute measures that would raise the price of cigarettes by
A) 5%
B) 10%
C) 15%
D) 20%
Correct Answer:
Verified
Correct Answer:
Verified
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