a 10% increase in cigarette prices has been found to result in a ______ decrease of smokers.\na. 2%\nb…
a 10% increase in cigarette prices has been found to result in a ______ decrease of smokers.\na. 2%\nb. 4%\nc. 10%\nd. 20%\nplease select the best answer from the choices provided.
Answer
Brief Explanations:
Economic research shows that cigarette demand is relatively in - elastic. A 10% increase in cigarette prices typically leads to a smaller percentage decrease in the number of smokers. Empirical evidence suggests around a 2% decrease.
Answer:
A. 2%