Multiple Choice
Studies indicate that the price elasticity of demand for cigarettes is about 0.4.A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6.According to the midpoint method,the government policy should have reduced smoking by
A) 30%.
B) 40%.
C) 80%.
D) 250%.
Correct Answer:
Verified
Correct Answer:
Verified
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