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Cigarettes were largely unknown in the English-speaking world before the Crimean War, when British soldiers began emulating their Ottoman Empire comrades, who resorted to rolling their tobacco with newsprint

Learning Objectives Learning Objectives By the end of this section, you will be able to do the following: Analyze how price elasticities impact revenue Evaluate how elasticity can cause shifts in demand and supply Predict how the long-run and short-run impacts of elasticity affect equilibrium Explain how the elasticity of demand and supply determine the incidence of a tax on buyers and sellers Studying elasticities is useful for a number of reasons, pricing being most important

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The key behind an investment in tobacco stocks is the inelastic demand for cigarettes relative to their price due to the addictive nature of these products
