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This article describes how, in the midst of the economic downturn, hard-hit Eastern European countries are increasing taxes on cigarette and alcohol - goods with relatively inelastic demand curves - in an attempt to raise government revenue. A problem that many of these countries face is that a large proportion of alcohol and cigarettes are produced and sold without license/illegally, making it difficult for governments to collect revenue.

This article from the Ennhar Online shows the relative inelasticity of demand for cigarettes and tobacco in Algeria. The government has increased the price of cigarettes, tobacco and chewing tobacco several times, as well as imposing a hefty tax on importing and producing tobacco related goods. However, this has had little effect on the people of Algeria, who continue to smoke despite increasing prices. Because tobacco is an addictive substance, this has caused the PED to be inelastic.

In this article New York City's health commissioner believes that the demand for cigarettes is price elastic and that with a high enough increase in price, there will be a large decrease in demand. This is contrary to the the notion that addictive goods have inelastic price elasticity of demand.