According to the same World Bank study, a 10% increase in the price of cigarettes will lead to an 8% reduction

Question

According to the same World Bank study, a 10% increase in the price of cigarettes will lead to an 8% reduction in consumption of cigarettes in low- and middle-income countries. This means that the absolute value of the elasticity of demand in these countries is:







A.
0.8



B.
8%



C.
10%



D.
8



E.
0.8%



F.
10

Answer 1

% change in quantity / % change in price=8/10=.8