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If the Number of Highway Deaths Among Young People Is

Question 47

Multiple Choice

If the number of highway deaths among young people is roughly proportional to their beer consumption and young peoples' elasticity of demand for beer is 1.5, then a tax increase that increases the price of beer by 20% would roughly reduced highway deaths of young people by


A) 1.5%.
B) 13.33%.
C) 20%.
D) 30%.

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