Problem
1. Draw a demand curve with unitary elasticity everywhere. (Hint: Think about total revenue.)
2. Practical Application: If the elasticity of demand for cigarettes among teenagers is 0.5, how much would the price of a pack of cigarettes have to be raised from $10 to cut teenage smoking by 20 percent?
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.