If the demand for cigarettes decreases after the U.S. Surgeon General publicizes five new diseases associated with smoking, this is conclusive evidence that the demand for cigarettes is elastic.

Question

Quizplus · Accepted Answer

A decrease in demand due to new health information does not conclusively prove elasticity; it shows sensitivity to information, but elasticity refers to the percentage change in quantity demanded relative to a percentage change in price.

If the Demand for Cigarettes Decreases After the U