Problem
PRICE, CROSS, AND INCOME ELASTICITIES-HOW DO THEY RELATE TO ALCOHOL AND CIGARETTES? Go to the National Bureau of Economic Research (NBER) Web site and select New Working Papers. In the Google search space, type "alcohol." Use the titles and summaries of the papers to answer the following questions relating to elasticity:
(a) Do the mentally ill have perfectly inelastic demands for cigarettes and alcohol?
(b) Does alcohol consumption increase in bad times?
(c) What is the effect of cigarette taxes (and smuggling) on the consumption of alcohol? What does that imply about the cross elasticity of demand between the two?
(d) Is binge drinking among college students sensitive to the price of alcohol?
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.