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Princip of Econ-Microeconomics Module 3 Homework Assignment
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Cigarettes are generally considered a very inelastic good. Assume cigarette companies decrease the price of their product, what can you expect in terms of total revenue?
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The scenario states that cigarettes are generally very inelastic and that the price is decreased. Inelastic demand means that the percentage change in quantity demanded is smaller than the percentage change in price (|Ed| < 1......Login to view full explanationLog in for full answers
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