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If the elasticity of aggregate cigarette demand with respect to advertising were 0.15 in absolute value, by extrapolation what effect on cigarette consumption would be
If the elasticity of aggregate cigarette demand with respect to advertising were 0.15 in absolute value, by extrapolation what effect on cigarette consumption would be caused by a 10 percent reduction in advertising? A 50 percent reduction? A 100 percent reduction? How and why does one's confidence in prediction change over this range of reductions?
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