a 10% increase in cigarette prices has been found to result in a ____ decrease of smokers. a. 2% b. 4% c…
a 10% increase in cigarette prices has been found to result in a ____ decrease of smokers. a. 2% b. 4% c. 10% d. 20% please select the best answer from the choices provided.
Answer
Brief Explanations:
In economics, the price - elasticity of demand for cigarettes is relatively inelastic. Empirical studies suggest that a 10% increase in cigarette prices typically leads to a 2% decrease in the number of smokers. This is because cigarettes are addictive goods and consumers are less responsive to price changes in the short - run.
Answer:
A. 2%