More Bad News About High Gasoline Prices: A Look at Adult Cigarette Demand
- Presenter:
Chair: Rosalie Pacula; Discussant: Don Kenkel Wed June 7, 2006 9:45-11:15 Room 309
This paper is about the spending choices of youth, with a particular focus on how the demand for cigarettes and alcohol are influenced by changes in the prices of other products. Youth tend to have small incomes and limited needs, with the result that many students spend the bulk of their income on only a few items. Fast food, clothing and entertainment make up the majority of products purchased by teenagers. The hypothesis to be tested in this project is that changes in the prices of the other goods commonly bought by teenagers and young adults will affect budget allocations and thereby affect the demand for alcohol and cigarettes.
