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In 2016, Bansal, et al

This illegal market is found around the world because disparities in pricing across boundaries result in opportunities for people to profit off of those differences. The illicit cigarettes are often sold at the same stores as legal ones, stashed away in compartments until a customer uses code phrases like special price to signal they want to buy the tax-free versions, according to Schroth

"Nicotine use in any form has shown to be damaging to teens and this measure will close a dangerous loophole that allows e-cigarettes to be used in New York schools," Cuomo said in an announcement about the ban

In Figure 2, we draw a demand curve for cigarettes, which is less elastic or less flat than the one shown in Figure 1