Marcus says that he would smoke one pack of cigarettes each day regardless of the price.If he is telling the truth,Marcus's
A)demand for cigarettes is perfectly inelastic.
B)price elasticity of demand for cigarettes is infinite.
C)income elasticity of demand for cigarettes is 0.
D)More than one of the above is correct.

Question

Quizplus · Accepted Answer

If Marcus would smoke one pack of cigarettes each day regardless of the price, it means that his demand for cigarettes is not affected by the price of cigarettes. In other words, the price elasticity of demand is zero, which implies that the demand is perfectly inelastic. The income elasticity of demand is not relevant in this case since Marcus's income is not a factor that affects his demand for cigarettes.

Marcus Says That He Would Smoke One Pack of Cigarettes