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Youth smoking seems to be more elastic than adult smokingthat is, the quantity of youth smoking will fall by a greater percentage than the quantity of adult smoking in response to a given percentage increase in price

Same facts as Example 1, except that, in addition to the $600 reward for compliance with the health-contingent wellness program, the plan also imposes an additional $2,000 tobacco premium surcharge on employees who have used tobacco in the last 12 months and who are not enrolled in the plan's tobacco cessation program

a few weeks later, he was a national celebrity

Price elasticity

Gutka is a tobacco product that is smokeless