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Use the final graph in the Washington Post article, How Obama's Tobacco Tax Would Drive Down Smoking Rates, to calculate the price elasticity of demand for cigarettes smoked per day for smokers who smoke 20 cigarettes per day and smokers who smoke 30 cigarettes per day when the price per pack increases by 25% . Enter your answers as absolute values rounded to two decimal places. You do not need to use the mid-point method for determining the price elasticity of demand.

20-cigarette-per-day-smoker elasticity:

30-cigarette-per-day-smoker elasticity:

Which statement best describes the influence that the number of cigarettes smoked per day has on the price elasticity?

Price sensitivity is independent of how many cigarettes per day a smoke initially consumes.

Smokers who initially smoke more cigarettes per day are less price sensitive than smokers who initially smoke fewer cigarettes per day.

Smokers who initially smoke more cigarettes per day are more price sensitive than smokers who initially smoke fewer cigarettes per day.