If the demand for cigarettes is highly inelastic, this indicates that
A) higher cigarette prices will increase the demand for cigarettes.
B) the price elasticity coefficient of cigarettes exceeds 1.
C) the price elasticity coefficient of cigarettes equals 1.
D) the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes.

Question

Quizplus · Accepted Answer

If the demand for cigarettes is highly inelastic, it means that the quantity of cigarettes purchased by consumers is not very responsive to a change in the price of cigarettes. This indicates that if the price of cigarettes increases, the quantity demanded is unlikely to decrease significantly, and if the price decreases, the quantity demanded is unlikely to increase significantly. Hence, option D is the correct answer.

If the Demand for Cigarettes Is Highly Inelastic, This Indicates