Studies indicate that the price elasticity of demand for cigarettes is about 0.4. A government policy aimed at reducing smoking changed the price of a pack of cigarettes from $2 to $6.

According to the midpoint method, the government policy should have reduced smoking by :

(A) 30%.

(B) 40%.

(C) 80%.

(D) 250%.

(E) 5%.

B) 40%

Explanation:

We know that elasticity = percent change in quantity/percent change in price

From the midpoint formula, we know how to find the percentage change in

price as       plugging in the values, the percent change in price comes out as 100%

using the elasticity formula we can now find the percent change in quantity

elasticity = percent change in q/percent change in p

0.4 = percent change in q/100

percent change in q = 40%

match the scenarios with terms related to financial aid.

pell grant

student loan

merit-based scholarship

richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.

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anita wants to pursue a certificate program in sports nutrition. to pay for the course, she borrows money by filing the fafsa.

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nathan comes from a low-income household. he wants to pursue an undergraduate degree in marketing. he receives financial aid covering 50 percent of his college expenses. nathan does not have to pay back this amount.

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