Commentary

Cigarettes are highly taxed products. The article talks about the US State Indiana which is advising Kentucky to increase their cigarette tax in order to discourage young smokers and reduce tobacco related health costs.

Price Ceiling

A priece celing is set in retail markets to lower the prices of goods like chicken for the benefit of consumers.


http://thestar.com.my/news/story.asp?file=/2008/11/24/nation/2629708&sec=nation

Retailers cut back

While the American's are spending less, the retailers are cutting prices and employing fewer people.


http://www.lohud.com/article/2008811230324

Cigarette Tax

A US state putting a tax on cigarettes to decrease the amount of smokers in the USA!


http://www.courier-journal.com/article/20081120/NEWS01/811200405

-impact of tax
-dead weight loss
-elasticity