The elasticity of demand for cigarettes by a non-smoker is:

Related Mcqs:

1. The government is considering placing a tax on cigarettes to raise revenue to finance health-care benefits. The demand for cigarettes is price inelastic Which of the following statements is True ?

   A. This tax will not raise much revenue either in the short term or the long term since demand is price inelastic B. The tax on cigarettes may not raise as much revenue as anticipated in the years to com because the demand for cigarettes is likely to become more elastic over time. C. This...

2. Suppose that at a price of Rs 30 per month there are 30000 subscribers to cable television in small Town. If small Town Cablevision raises its price Rs40 per month the number of subscribers will fall to 20000 Using the midpoint method for calculating the elasticity what is the price elasticity of demand for cable TV in Small Town ?

   A. 1.4 B. 0.66 C. 0.75 D. 2.0...

3. In food demand growth equation D = Φ + a E, a is the income elasticity of demand for food E is the per capita income growth and Φ is ?

   A. Poverty rates B. food security index C. change in the quantity of food demanded per capita D. population growth...

4. The kinked demand curve model of oligopoly assumes the elasticity of demand ?

   A. in response to a price increase is less elastic than the elasticity of demand in response to a price decrease B. is perfectly elastic if price increases and perfectly inelastic if price decreases C. is constant regardless of whether price increase of decrease. D. in response to a price increases is more elastic than...

5. If demand is linear (a straight line) then price elasticity of demand is ?

   A. elastic in the upper portion and inelastic in the lower portion B. inelastic in the upper portion and elastic in the lower portion C. inelastic throughout D. constant along the demand curve...

6. Devaluation of currency can help to increase exports if elasticity of demand of exportable items in other countries is ?

   A. Less than one B. Greater than one C. Equal to one D. Zero...

7. The price elasticity of demand is the ?

   A. ratio of the change in price to the change in quantity demanded. B. ratio of the percentage change in quantity demanded to the percentage change in price. C. ratio of the change in quantity demanded to the change in price. D. ratio of the percentage change in price to the percentage change in quantity...

8. If the cross elasticity of demand is -2 ?

   A. The products are substitutes and demand is cross price elastic B. The products are substitutes and demand is cross price inelastic C. The products are complements and demand is cross price elastic D. The products are complements and demand is cross price inelastic...

9. The price elasticity of demand measures ?

   A. The responsiveness of quantity demanded to a change in price B. How far a demand curve shifts C. a change in price D. a change in quantity demanded...

10. If the price elasticity of demand for a product in market A is -0.2 and in market B is -3 a price discriminator will charge ?

    A. The higher price in market A B. The higher price in market B C. The same Price in both markets D. Cannot tell which price will be higher...