Yosi economics: An analysis of the underlying assumptions of cigarette demand and construction of a baseline static cigarette demand model

• Main Authors: Chua, Jerom Wayne A., Cipriano, Marrion Luis A.
• Format: text
• Language: English
• Published: Animo Repository 2021
• Subjects: Production (Economic theory); Cigarette industry; Economics
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/5538
• Institution: De La Salle University

Consumer choice theory defines demand for a normal good as a function of price and non-price factors. This theoretical research will present a baseline model for cigarette consumption while relaxing aspects of classical economic theory. Other factors such as addiction and psychological factors will be incorporated exogenously--although limited-- due to the static nature of the suggested model. A comparison is done to the model of Cobb--Douglas utility functions to illuminate some properties of this model.