11. Because of a legal settlement over state health care claims, in 1999 the tobacco companies had...

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11. Because of a legal settlement over state health care claims, in 1999 the tobacco companies had to raise the average price of a pack of cigarettes from $1.95 to $2.45. The projected decline in cigarette sales was 8 percent. What does this imply about the elasticity of demand for cigarettes? Explain.

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Microeconomics : Microeconomics: Principles, Problems, And Policies

ISBN: 9781631577277

1st Edition

Authors: McConnell / Stanley L. Brue / Thomas P. Barbiero

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