ECN Module 3 Assignment

ECN Module 3 Assignment - Christopher Brooks ECN-220...

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Christopher Brooks ECN-220 Introduction to Economics Thursday, July 14, 2011 Professor Momoh Dudu Price Elasticity of Demand Analysis The youth market, that is 12-17 years of age, are more likely to be more affected by the price of cigarettes than the adult market. Data showed that a 10 percent increase in cigarette pricing had the almost immediate effect of reducing purchasing by that age group by 14 percent (Chaloupka, 1998, 3). Children and young adults are especially sensitive to price increases because they have less disposable income than adults and are typically less addicted to the nicotine. If young people are not working, they typically depend on their parents for lunch and spending money, and unless the parent is aware of their smoking, and approves, are unlikely to give the child more money to spend on cigarettes. More than 80% of tobacco users begin between the ages of 10 and 18, with an average age of onset of 14-15: tobacco use is a pediatric medical disorder. Most young people do not expect to become addicted, but with each year of use their signs of addiction increase. As with adults, signs of addiction are generally related to the number of cigarettes smoked per day, and often to the time since smoking began. By age 17, 70% of smoking youth regret having started smoking, and 50% have tried--and failed-- to quit. The prevalence of cigarette smoking by youth has increased each year since 1992, even
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ECN Module 3 Assignment - Christopher Brooks ECN-220...

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