The demand for cigarettes did not substantially decline despite the introduction of a high excise tax because demand for cigarettes is
A) elastic and does respond to price changes
B) inelastic and does respond to price changes
C) elastic and does not respond to price changes
D) inelastic and does not respond to price changes

Question

Quizplus · Accepted Answer

The demand for cigarettes did not substantially decline despite the introduction of a high excise tax because demand for cigarettes is inelastic and does not significantly respond to price changes.

The Demand for Cigarettes Did Not Substantially Decline Despite the Introduction