Demand for cigarettes is
A) relatively elastic.
B) relatively inelastic.
C) increasing in the U.S.
D) greater among wealthier people.

Question

Quizplus · Accepted Answer

The demand for cigarettes is relatively inelastic because people still continue to purchase them despite increases in price or taxes. However, there has been a general decline in cigarette consumption over the years due to public health campaigns and increased awareness of the negative health effects of smoking. There is also evidence that cigarette demand is higher among lower-income individuals.

Demand for Cigarettes Is