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Unformatted text preview: talking here about supply elasticity, not demand elasticity.) Explain your answer using determinants of elasticity. The cigarette industry is comprised of wholesale markets that manufacture the product then sells them to retailers for a low price and the retailers turn around and sell them to consumers for five times as much. For those people who are addicated to smoking or those who just smoke after they eat or while drinking, will more than likely purchase the product no matter how much the price changes, the product is taxed by the government, or health professionals warnings of the dangers of smoking....
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This note was uploaded on 04/07/2012 for the course ECONOMICS 101 taught by Professor Dr.edmondson during the Spring '11 term at Thomas Edison State.
- Spring '11