Which of the following most likely explains why cigarettes has a price elasticity of demand of -0.28? O it is a necessity O it is a luxury good it has many substitutes O it is a large share of your budget

Which of the following most likely explains why cigarettes has a price elasticity of demand of -0.28? O it is a necessity O it is a luxury good it has many substitutes O it is a large share of your budget

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter5: Price Elasticity Of Demand And Supply

Section5.3: Determinants Of Price Elasticity Of Demand

Problem 1YTE: According to the previous discussion, what factors influence the price elasticity of demand for...

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Which of the following most likely explains why cigarettes has a price elasticity of demand of -0.28?
O it is a necessity
O it is a luxury good
O it has many substitutes
O it is a large share of your budget.

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