Nobel Prize-winning economist Gary Becker corrected President Clinton's elasticity estimate for cigarette smoking by
A)Showing that cigarettes were actually price-elastic.
B)Showing that the long-run response to a price increase in cigarettes was likely to be more elastic than the president had estimated.
C)Showing that the demand for cigarettes in the short run was more inelastic than the president calculated.

Question

Quizplus · Accepted Answer

Gary Becker argued that President Clinton's estimate of the elasticity of cigarette smoking was too low, and that the long-run response to a price increase was likely to be more elastic than the president had estimated. Therefore, choice B is the correct option.

Nobel Prize-Winning Economist Gary Becker Corrected President Clinton's Elasticity Estimate