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Back to Basics #4: Price elasticity Research Unit on the Economics of Excisable Products Why do cigarettes have a negative income elasticity of demand? Quora Elastic vs. Inelastic: What It Means for Smoking Elastic demand When a product is elastic, a price increase leads to a significant drop in consumption. Example: Luxury goods or The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on Differences in Elastic and Inelastic Cigarettes by Company in Canada, 1996 Download Table Implications Of Perfectly Inelastic Demand For Consumers FasterCapital
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