Problem
Keeler et al. (2004) estimate that, when the U.S. Tobacco Settlement between major tobacco companies and 46 states caused the price of cigarettes to jump by 21% (45¢ per pack), overall per capita cigarette consumption fell by 8.3%. What is the elasticity of demand for cigarettes? Is overall cigarette demand elastic or inelastic?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.