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Price elasticity of tobacco products among economic classes in India, 20112012 BMJ Open Solved Studies indicate that the price elasticity of demand 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 Solved: The market for cigarettes Figure 1: Price elasticity of demand a comparison between toba [Economics] The demand for cigarettes is highly inelastic. This suggests that the incidence of a higher tax on cigarettes will fall primarily on
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