Increases in cigarette prices reduce smoking by more in low- and middle-income countries than comparable increases in prices in high-income countries.

Economic theory implies that price sensitivity of cigarette smoking would be greater in lower income populations. A small but growing number of cigarette demand studies from low- and middle-income countries confirm this hypothesis. Estimates of the price elasticity of tobacco demand in low- and middle-income countries are approximately double those estimated for high-income countries, implying that a 10% cigarette price rise in low- and middle-income countries would reduce smoking by between 4 and 14%.

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