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An addicted smoker likely has which type of demand?

An addicted smoker likely has which type of demand? a) Elastic demand
b) Inelastic demand
c) Perfectly elastic demand
d) Unitary elastic demand

Final answer:The correct option is b) Inelastic demand.  Addicted smokers have a relatively inelastic demand for cigarettes, meaning that the quantity demanded does not change significantly in response to price changes.Explanation:Inelastic demand refers to a situation where the quantity demanded of a good or service does not change significantly in response to a change in price. Addicted smokers have an inelastic demand for cigarettes because they are somewhat addicted to smoking. Even if the price of cigarettes increases, addicted smokers are likely to continue buying and consuming cigarettes, as the demand for cigarettes among regular smokers is relatively inelastic. Economic research shows that increasing cigarette prices by 10% leads to only about a 3% reduction in the quantity of cigarettes that adults smoke, indicating the inelasticity of demand for cigarettes.This type of demand is characterized by a low price elasticity of demand, meaning that the quantity demanded does not change proportionally with a change in price. Inelastic demand allows producers to pass higher costs on to consumers, as addicted smokers are less responsive to changes in price....

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