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a.The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units. Calculate the price elasticity of

a.The price of a good rises from $8 to $12, and the quantity demanded falls from 110 to 90 units. Calculate the price elasticity of demand.

b.Studies indicate that the price elasticity of demand for cigarettes is about -0.4. If a pack of cigarettes currently costs $2, and the government wants to reduce smoking by 20 percent, by how much should it increase the price?

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