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This article clearly shows the way price and taxes changes the demand on tobacco. It gives us a good description of that products. So after that article we can conclude that tobacco is not that price sensitive. And attempts of the government to reduce the number of consumers by increasing taxes did not really work. The conclusion of the article makes it really clear and easy to understand: "From the above discussion it is evident that the price of elasticity of value is an important measure of the changes that will occur when a tax is imposed on tobacco products, this value is important in that it can help in determining the appropriate tax value that should be imposed in order to reduce tobacco consumption. Taxes on the other hand should be fair and depending on the price elasticity value of tobacco products certain groups in the economy may be unfairly taxed whereby poor individuals in the economy may have a greater tax burden than higher income individuals."

The government in Manila is taking advantage of taxing Tobacco. Franklin M. Drilon, acting chairman of the senate, is trying to make this tax a done deal. He thinks it should be taxed because it is a "sin" product. It would see the government raise 40-45 billion Peso's in tax revenue. Senator Ferdinand R. Marcos is concerned about this and is doing his best to prevent this tax. He knows the affects it could have on the tobacco farmers. There are about 18,000 tobacco farmers who are concerned about this tax. I think this is unfair of the Government. I don't think tobacco is a "sin" good, as it is many peoples alternative to drugs. This tax could put many producers out of jobs seeing as the demand will not be as high, and also this tax could force poor people to go back to cheaper alternatives that are very unhealthy and addictive.

This article talks about Ireland having the highest tobacco pricesses in Europe. The european commision is stating that the Irish government "is against EU law, distorts competition and keeps tobacco company profits high." The Irish government says that by keeping the prices high on tobacco its a good way to control smoking in the country and that its policy of high prices is with the World Wide Health Organisations regulation policy. what the European comission is trying to do acoording to this article is to encourage Ireland to take off the price controls. but they refused and are going to court against the EU regulations in Luxemburg.

According to this article, the recession has induced Americans to reevaluate their spending and adopt cost-saving strategies such as using coupons or taking advantage of sales. Many people have reduced the amount of money they spend, over the last couple of years, especially those who have incomes of under $45,000. "The consumer mindset has changed (…) they've become used to being careful about what they buy and where they buy it." However, while price is a major factor, consumers said that quality was still a top priority. The article indicates that there are certain items that consumers will not go without: The first item on the list was animal protein: 10 percent [of consumers] said they refuse to give up meat, poultry, fish and seafood. Also, 8 percent saying they would not forgo alcohol, tobacco; coffee, tea; milk, juice, or household and laundry supplies. As expected, "38 percent say they're purchasing less clothing and 20 percent said they're buying less expensive brands." Therefore, items such as proteins, alcohol, tobacco, coffee, tea, milk, juice, and household supplies are relatively inelastic goods with regard to income. On the other hand, clothing is an inelastic good during this recession.