Please answer the question. Thank you.

1|]. Problems and Applications Qll] Consider public policy aimed at smoking. Studies indicate that the price elasticity of demand for cigarettes is about I12. If a pack of cigarettes currently costs $5 and the goyernment wants to reduce smoking by 10%, it should increase the price byl % . If the government permanently increases the price of cigarettes, the effect on smoking 1 year from now will be v than the effect 3 months from now. Studies also find that teenagers have a higher price elasticity of demand than do adults. Which of the following statements are consistent with this result? Check ai'i' that apply. I Teenagers do not haye as much income as adults, so they are more price sensitive. I Adults are more likely to be addicted to cigarettes. I It is legal for adults to consume alcohol, so many choose to spend their money on that good rather than cigarettes