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.
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 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