Consider the following passage from the article. According to studies cited by the American Cancer Society, the most surefire way to get people to quit, especially youths, is to raise prices. A 10 percent increase, for example, is followed by a 6.5 percent reduction in the number of cigarette-smoking youths and a 2 percent reduction of the habit in adults. If the numbers in the article are correct, a tax which raises the price of cigarettes Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is inelastic among youths and elastic among adults. Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is more inelastic among youths than adults. Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is elastic among youths and inelastic among adults. Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is less inelastic among youths than adults. Will raise total expenditures on cigarettes more in percentage terms for adults than it will from youths because demand is less inelastic among youths than adults.
Consider the following passage from the article. According to studies cited by the American Cancer Society, the most surefire way to get people to quit, especially youths, is to raise prices. A 10 percent increase, for example, is followed by a 6.5 percent reduction in the number of cigarette-smoking youths and a 2 percent reduction of the habit in adults. If the numbers in the article are correct, a tax which raises the price of cigarettes Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is inelastic among youths and elastic among adults. Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is more inelastic among youths than adults. Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is elastic among youths and inelastic among adults. Will raise total expenditures on cigarettes more in percentage terms from youths than it will from adults because the demand is less inelastic among youths than adults. Will raise total expenditures on cigarettes more in percentage terms for adults than it will from youths because demand is less inelastic among youths than adults.
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter5: Elastic And Its Application
Section: Chapter Questions
Problem 10PA
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Multiple answers may be correct.
Transcribed Image Text:Consider the following passage from the article.
According to studies cited by the American Cancer Society, the most surefire way to get
people to quit, especially youths, is to raise prices. A 10 percent increase, for example, is
followed by a 6.5 percent reduction in the number of cigarette-smoking youths and a 2
percent reduction of the habit in adults.
If the numbers in the article are correct, a tax which raises the price of cigarettes
Will raise total expenditures on cigarettes more in percentage terms from youths than it will
from adults because the demand is inelastic among youths and elastic among adults.
O Will raise total expenditures on cigarettes more in percentage terms from youths than it will
from adults because the demand is more inelastic among youths than adults.
O Will raise total expenditures on cigarettes more in percentage terms from youths than it will
from adults because the demand is elastic among youths and inelastic among adults.
Will raise total expenditures on cigarettes more in percentage terms from youths than it will
from adults because the demand is less inelastic among youths than adults.
O Will raise total expenditures on cigarettes more in percentage terms for adults than it will from
youths because demand is less inelastic among youths than adults.
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