Question
the price elasticity of demand for cigarettes is price inelastic meaning that a per unit tax on cigarettes puts the greater burden on smokers. So
the price elasticity of demand for cigarettes is price inelastic meaning that a per unit tax on cigarettes puts the greater burden on smokers. So part of the lessening of smoking in the U.S. has been this effect.
If policymakers wished to do the same for other substances they deem harmful to society's general welfare, they can follow this model of the cigarette market to serve them. If their target product and market has the same characteristics as the cigarette market, an effective policy similar to that of the cigarette policy could be followed.
What other products or services can you think of that may be subject to such a successful policy? How may its market differ from that of cigarettes?
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