Student workpoint 5.4 Be a thinker-calculate, consider, and explain 1 Calculate the price elasticity of demand for Estimates based on studies of the US population cigarettes among US adults and among US youths. suggest that a 10% increase in the price of cigarettes 2 Suggest possible reasons for the different would reduce overall consumption by adults by 3% magnitude of elasticity between the two groups. to 5%. The same 10% increase would reduce the 3 Explain two possible reasons why a government consumptions by youths by 13%. would place a tax on cigarettes