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Author Question: Suppose the price elasticity of teenagers' demand for cigarettes is 2.0. If the government imposes a ... (Read 132 times)

Ebrown

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on: Jun 29, 2018
Suppose the price elasticity of teenagers' demand for cigarettes is 2.0. If the government imposes a tax on cigarettes that raises the price by 10 percent, by how much will it reduce teenaged smoking?
 
  A) by 5 percent
  B) by 10 percent
  C) by 15 percent
  D) by 20 percent

Question 2

The law of demand states that the quantity of a good demanded varies
 
  A) inversely with its price.
  B) inversely with the price of substitute goods.
  C) directly with income.
  D) directly with population.


quynhmickitran

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Reply #1 on: Jun 29, 2018
Answer to Question 1

D

Answer to Question 2

A


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