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Because of a legal settlement over state health care claims, in 1999 the U.S. tobacco companies had to raise the average price of a pack

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

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