What might explain the difference in elasticities

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Kean University Professor Henry Saffer and Bentley University Professor Dave Dhaval estimated that if the alcohol industry increased the prices of alcoholic beverages by 100 percent underage drinking would fall by 28 percent and underage binge drinking would fall by 51 percent.

a. What is the elasticity of demand of underage drinking and binge drinking?

b. What might explain the difference in elasticities?

Reference no: EM131402267

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