Consider public policy aimed at smoking. (a) Studies indicate that the point price elasticity of demand for cigarettes is about 0.4. If a pack of cigarettes is currently costs $5 and the government wants to reduce smoking by 20 percent, by how much should it increase the price (through taxation)? (b) If the government permanently increases the price of cigarettes, will the policy have a larger effect on smoking one year from now or five years from now? (c) Studies also find that teenagers have a higher point price elasticity than adults. Why might this be true?