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MacCoun and Reuter Calculate That for Which of the Following

Question 4

Multiple Choice

MacCoun and Reuter calculate that for which of the following substances is the elasticity index the greatest-that is, there is the greatest decrease in purchases, given a 1 percent increase in price?


A) heroin.
B) cigarettes.
C) marijuana.
D) MacCoun and Reuter argue that calculating the elasticity index is impossible because such an outcome as drug purchases, given price, cannot be known.
E) none of the above.

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