2.) A research article while a relatively wide range of estimates has been produced for the price elasticity of demand for cigarettes most of the estimates from the USA and other high income countries tend to fall in the relatively narrow range from -0.25 to - 0.50 this means that if the price of cigarettes were to decrease 10% the quantity of cigarettes demanded would

a.) Increase by 0.25 to 0.50%

b.)decrease by 2.5% to 5.0%

c.) increase by 2.5% to 5.0%

3.) the same research article includes the line "the overall price elasticity of teen smoking was -1.44/ the was more than three time the estimated elascity of -.42 obtained from the study of adults

This implies:

a.) teenagers are willing to pay more tan three times as much for cigarettes than adults

b.) teenagers will purchase much fewer cigarettes if prices rise than adults who will only reduce purchases a minoramount

c.) teenage cigarette demand is inelastic wile adult cigarette demand is elastic

4.) What is true at the quantity where total revenue is maximized

a.) demand is inelastic

b.) MR is positive

c.) MR is negative

d.) the elasticity value= 1

5.) you overhear an economist saying that demand for magnesium groovehelmets is inelastic. This means that a given price change will induce a large quantity demand response.

True or false

6.) At its current price demand for magnesium groovehelmets is inelastic if its price were to decrease total revenue would be expected to rise

True or false

which product would tend to have the most elastic demand?

a.) a typical three bedroom two bathroom home in the suburbs

b.) a penthouse apartment across the street from central park in new York city

c.) an almond joy cocnut almonds and chocolate candy bar

d.) a refrigerator that is needed after your old one unexpectedly stops working