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The price elasticity of demand for cigarettes is 0.4. If government wants to reduce smoking by 10 per cent, by how much should it aim
The price elasticity of demand for cigarettes is 0.4. If government wants to reduce smoking by 10 per cent, by how much should it aim to raise the price of cigarettes by imposing a tax?
A) By 10 per cent. B) By 50 per cent. C) By 25 per cent. D) By 20 per cent.
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