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Thus, measuring their responsiveness to price is important in determining the optimal level of taxation and the impacts of legalization. Contrary to conventional wisdom, studies find that the consumption of addictive substances is quite sensitive to price.
Teen smoking has been increasing since 1991. There are economic, psychological and sociological factors that play an important role in this increase.
Economically, cigarettes are highly advertised, extremely affordable and accessible to practically anyone. As for the advertisement aspect in the sale of cigarettes, tobacco companies spend billions of dollars per year to advertise their brands...
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