Elasticity+of+econ

Definition: __Elasticity__ is the rate of consumer response of quantity demanded due to a change in product price. It is the relationship between percentage change in price and percentage change in demand.

[|Elasticity Article]

This article shows how the increase in cigarette prices leads to less smoking. The article says that a 10% increase in cigarette prices results in 18.2% less smoking. It concludes that increasing cigarette taxes may result in the reduction of smoking among individuals with alchol drug, or mental disorders.

[|Elasticity Video]