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According to some studies, the price elasticity of cigarettes is -0.85, and income elasticity is 1.75. Answer the following questions based on this information.
a. Explain whether the seller should decrease or increase the price of cigarettes in order to increase sales revenue.
b. If consumer income falls by 10%, what would be the percentage change in the quantity of cigarettes sold?
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1. the key ingredient-the crucial element-to avoiding the failure of a new business is points
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