explanation to elasticity of demand when sales decline due to increase price of cigarettes.?
- JuanBLv 711 months ago
That only refers to the usual downward sloping demand curve. Elasticity is related to how much sales decline when prices increase by how much. You don't include any numbers so you don't really have anything you can say about the elasticity.
I suppose the answer to the question could be that Elasticity of Demand is therefore a negative number.
- OiyLv 611 months ago
It's inelastic. The increase in price will cause a much more deline in quantity demanded in percentage terms. The revenue will decline.