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What does the following statement imply about price elasticity of demand? Government tries to reduce cigarette consumption with an extra 50 cent tax per pack.

What does the following statement imply about price elasticity of demand? "Government tries to reduce cigarette consumption with an extra 50 cent tax per pack. Policy raises government revenue but fails to curb smoking."

elasticity of demand for cigarettes equals 0.5

demand for cigarettes is elastic

demand for cigarettes is inelastic

elasticity of demand for cigarettes is equal to one

elasticity of demand for cigarettes is close to infinity

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