Elasticity of Demand: Elasticity of Cigarettes in Alexandria The article discusses the impact of the increase of cigarette prices in Alexandria. It discusses how people react to the increase and see how much more of an increase in price consumers is willing to accept before the stop buying the cigarettes. Elasticity is a measure of how sensitive one variable is to another. In particular, it measures how sensitive the quantity of a good that people …showed first 75 words of 419 total…

…showed last 75 words of 419 total…stop smoking..... They know we're all poor." Another possible result that Alexandria officials may be hoping for is that wit the cigarettes being quite elastic, they are able to make up money for their $10 million budget deficit expected in 2004. In conclusion, the people of Alexandria are not at ease with the increase of price of cigarettes, but will remain to consume them. However, we can see that they have limits, not making Cigarettes perfectly elastic.