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Lipsey & Chrystal: Economics 11e

Chapter 04

The World Health Organisation is active in promoting a reduction in demand for tobacco. The World Bank's 1999 report, the Economics of Tobacco Control produces estimates of variations in prices elasticity for tobacco between high-income countries and low- and middle-income countries. The Ukraine-based Alcohol and Drug Information Centre produced a WHO-funded report on The economics of tobacco control in Ukraine.... Of particular interest here is chapter 3.4, which attempts to estimate a demand function for cigarettes and produces estimates of price elasticity for smoking.

A relevant case study on the use of elasticity analysis can be found in summary form at Urbanfutures.org. The article originally appeared in the Journal of Urban Economics: The Long-Run Elasticity of Demand for Commuter Rail Transportation (Voith, 1991).

Biz/ed's Virtual Learning Arcade offers, amongst other elasticity simulations, a price elasticity of demand simulation.