...And Even Teen Smokers May Kick The Habit

How much would smoking decline if cigarette prices were raised dramatically? Economists calculate that the cigarette price elasticity of demand is around 0.4, meaning that a 10% price rise induces a 4% drop in demand. Although other factors can mitigate this effect somewhat, experts agree that a big rise in cigarette prices can be expected to lower consumption significantly--in part through reduced smoking, but mostly through people either stopping smoking or never acquiring the habit.

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