Table 2 shows a short-run elasticity of demand for cigarettes. The same study suggested that the long-run elasticity of demand for cigarettes ranges from 1.0 to 2.5. Which is larger—short-run or...

Table 2 shows a short-run elasticity of demand for

cigarettes. The same study suggested that the long-run

elasticity of demand for cigarettes ranges from 1.0

to 2.5. Which is larger—short-run or long-run

elasticity? Is this what we would expect? What

adjustments might smokers be able to make in the

long run that they cannot make in the short run that

can explain this relationship between short-run and

long-run elasticities?