Elasticity of Demand: Elasticity of Cigarettes in Alexandria
Elasticity of Demand: Elasticity of Cigarettes in Alexandria
The article discusses the impact of the increase of cigarette prices in Alexandria. It discusses how people react to the increase and see how much more of an increase in price consumers is willing to accept before the stop buying the cigarettes.
Elasticity is a measure of how sensitive one variable is to another. In particular, it measures how sensitive the quantity of a good that people …
Is this Essay helpful? Join now to read this particular paper
and access over 480,000 just like this GET BETTER GRADES
and access over 480,000 just like this GET BETTER GRADES
…stop smoking..... They know we're all poor."
Another possible result that Alexandria officials may be hoping for is that wit the cigarettes being quite elastic, they are able to make up money for their $10 million budget deficit expected in 2004.
In conclusion, the people of Alexandria are not at ease with the increase of price of cigarettes, but will remain to consume them. However, we can see that they have limits, not making Cigarettes perfectly elastic.
Need a custom written paper? Let our professional writers save your time.
Not a member yet?
