Could you explain No. 113 and 114, please? Panel (a) Panel (b) 110. Refer to Fig

Question

Could you explain No. 113 and 114, please? Panel (a) Panel (b) 110. Refer to Figure 4-4. The graphs show the demand for cigarettes. In Panel (a), the arrows are consistent with which of the following events? a. The price of marijuana, a complement to cigarettes, increased Mandatory health warnings were placed on cigarette packages c. Several foreign countries banned U.S. cigarettes in their countries. A tax was placed on cigarettes. 111. Refer to Figure 4-4. The graphs show the demand for cigarettes. In Panel (a), the arrows are consistent with which of the following events? a. Tobacco and marijuana are complements and the price of marijuana decreased. b. Tobacco is a "gateway drug" and the price of marijuana increased. c. The price of cigarettes increased. The arrows are consistent with all of these events 112. Refer to Figure 4-4. The graphs show the demand for cigarettes. In Panel (b), the arrows are consistent with which of the following events? a. The price of cigarettes increased. b. A tax was placed on cigarettes. C The prohibition of cigarette advertisements on television. Tobacco and marijuana are complements and the price of marijuana decreased. 113. For the general population, a 10 percent increase in the price of cigarettes leads to a a. 1 percent reduction in the quantity demanded of cigarettes. 4 percent reduction in the quantity demanded of eigarettes. c. 10 percent reduction in the quantity demanded of cigarettes. d. 12 percent reduction in the quantity demanded of cigarettes. 114. For teenagers, a 10 percent increase in the price of cigarettes leads to a l percent reduction in the quantity demanded of cigarettes 4 percent reduction in the quantity demanded of cigarettes. 10 percent reduction in the quantity demanded of cigarettes. 12 percent reduction in the quantity demanded of cigarettes.

Explanation / Answer

113. For the general population, a 10% increase in the price of cigarettes leads to a 4% reduction in te quantity demanded of cigarettes , this is according to the economic research data (statistical based data) , there is no explanation , these are the observations. Hence, option(B) is correct.

114. For the teenagers, a 10% increase in the price of cigarettes , leads to a 12% rreduction in the quantity demanded of cigarettes, according to the economic research data. Hence, option(D) is correct.

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