The elasticity of demand for cigarettes by a non-smoker is:
Correct answer: D. Perfectly price inelastic
- A. Unitary price elastic
- B. Relatively price inelastic
- C. Perfectly price elastic
- D. Perfectly price inelastic
Explanation
A nonsmoker has no intention of purchasing cigarettes, so the quantity demanded remains zero regardless of price. In the standard textbook treatment, this is represented as perfectly price inelastic demand.
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