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Cigarettes Are Highly Addictive and Therefore Have a Very Low

Question 102

Multiple Choice

Cigarettes are highly addictive and therefore have a very low elasticity of demand.A $2.00 increase in the national sales tax on cigarettes would likely cause the price paid by buyers of cigarettes to


A) increase by more than $1.00 but less than $2.00.
B) increase by $2.00.
C) increase by more than $2.00.
D) increase by less than $1.00.
E) remain unchanged.

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