Multiple Choice
If the price elasticity of demand for cigarettes is 0.4,
A) The demand is elastic.
B) A 10 percent increase in price will cause quantity demanded to fall by 40 percent.
C) The demand is inelastic.
D) A 5 percent decrease in price will cause quantity demanded to rise by 10 percent.
Correct Answer:
Verified
Correct Answer:
Verified
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