Author Question: If the demand for cigarettes is highly inelastic, this indicates that: a. higher cigarette prices ... (Read 80 times)

mmm · **on:** Jun 30, 2018

If the demand for cigarettes is highly inelastic, this indicates that:
a. higher cigarette prices will increase the demand for cigarettes.
b. the price elasticity coefficient of cigarettes exceeds 1.
c. the price elasticity coefficient of cigarettes equals 1.
d. the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.

Question 2

If a demand curve for a good were completely vertical, it would be considered:
a. perfectly elastic.
b. perfectly inelastic.
c. of unitary elasticity.
d. relatively inelastic.