1. B A K H O D I R ( B O B B Y ) Y A K U B O V
M I K A M A H Y E N G A
MBA 674

2. Tobacco in U.S.
 Lawsuits, penalties Damage> $200 Bln
 WSJ report -“Damage under control”
 Our task: What they did and Why it succeeded?

3.  Cigarette-Inelastic product=|%∆Q|<|%∆P|=|E|<1
TR=P×Q
 No substitutes;
 Action Damage transferred to Consumers;
 Worked as a Determinant (Pi) Left Supply Shift

4. Inelastic Demand and Supply shift response to Price change policy
P1
P2
Q1Q2