"simple economics" wouldn't work in this case. the vast majority of the cost is a tax...law trumps economics hereThe continuing increase in price and an increasing health awareness are driving demand way down. At what point does simple economics kick in and price starts going down again?
not true. if you eat alot of fried foods and are not i good health you may use medical services more which can drive up the price for others medical. no different than smoking.My eating cake doesn't affect other people. Smoking effects others on occasion. That's the difference in your analogy.
"simple economics" wouldn't work in this case. the vast majority of the cost is a tax...law trumps economics here
i was just reminiscing how at UAB I would grab a 6-pack of Miller Lite and a pack of Camel Lights on my way back from class and get a little bit of change back for my $5 bill. that was >25 years ago of course but today that same exchange would be $20+ in nyc
but the increase is vast majority taxesThere is a product cost component and an excise tax component. Demand should affect the product cost. That's all I was saying.
Cigs in NY are up from $10.44 on 8/1 to $13 now. Federal excise tax of $1.01 and NY state excise tax of $4.35 (highest in the US) have remained constant. So product cost has gone up from ~$5 to ~$7.50, a 50% increase. Why? One would have to assume demand is at the lowest it has been in decades.
As stated earlier it's just an interesting inelasticity of demand situation due to the addictive nature of the product.
RT so you want everyone to get cancer, have you ever seen pics of the lungs after someone have been smoking several yrs, it not a pretty sight
not true. if you eat alot of fried foods and are not i good health you may use medical services more which can drive up the price for others medical. no different than smoking.