A research article includes the line "While a relatively wide range of estimates has been produced for the price elasticity of demand for cigarettes, most of the estimates from the USA and other high income countries tend to fall in the relatively narrow range from 0.25 to 0.50."

This means that if the price of cigarettes were to decrease 10%, the quantity of cigarettes demanded would

Select one:

a.decrease by 2.5% to 5.0%.

b.increase by 0.25% to 0.50%.

c.increase by 2.5% to 5.0%.

The same research article includes the line "the overall price elasticity of teen smoking was 1.44. This was more than three times the estimated elasticity of 0.42 obtained from the study of adults."

This implies that

Select one:

a.teenage cigarette demand is inelastic, while adult cigarette demand is elastic.

b.teenagers will purchase much fewer cigarettes if prices rise than adults, who will only reduce their purchases a minor amount.

c.teenagers are willing to pay more than three times as much for cigarettes as adults.