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Cigarettes and alcohol are often described as having an ‘inelastic price’.

Cigarettes and alcohol are often described as having an ‘inelastic price’. What does this mean?

A.

Changes in price will greatly affect how much of the item is bought

B.

Changes in price will not affect how much of the item is bought

C.

The product is subject to high rates of tax

D.

The product is subject to age restrictions

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