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Old March 12th, 2009, 09:39 PM
bradedup's Avatar
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Hookah Master
Join Date: Jun 2008
Location: Madison, WI
Posts: 3,258
Default Re: new tobacco taxes?

Originally Posted by Scoop View Post
this goes against basic economic theory. the less demand, the lower the price. doesn't even make sense logically, if the demand is low, and you charge more, the demand will continue to drop.

yeah but it goes into demand elasticity, and what your demand function actually looks like. If you have a demand function that is basically vertical increasing price barely effects equilibrium quantity >.>

tobacco is one of these things
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