Quote:
Originally Posted by Ronald Pagan
This statement is categorically false. There is a positive price elasticity of demand for tobacco products as evidenced in countless academic studies.
Protip: Anecdotal evidence and personal presumptions are not convincing and can work against the arguments you make by biasing the reader against you.
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That's quite interesting. I've read studies that say addicts will spend themselves into oblivion to maintain their habit, be it, drugs, alcohol, gambling or smoking. Of course, this could all happen at a price point that the market will bear.
Of course, there's also the danger of a cigarette black market emerging to counter the price gouge of the government(via the natives most likely as they are tax exempt and have special border privileges, or organized crime).
Personally, I am in favor of cigarette sin taxes. Unlike alcohol, which is beneficial if consumed responsibly, cigarettes are proven killers, even in small dosages, which are in turn, strains on the healthcare sector (even in the US).