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Cost-effectiveness analysis and policy choices: investing in health systems

However, he noted that raising tobacco taxes needs to be combined with other measures such as the continued expansion of smoke-free zones

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However, they may switch to alternatives such as public transport or bicycles in the long term The significance of PED to businesses If businesses can determine the PED for their products, they can adjust their pricing strategy to maximise their revenue The relationship between PED and total revenue Price elastic demand If demand for their products is relatively price elastic (PED is greater than or less than 1) , raising the price will lead to a fall in total revenue However, lowering the price will lead to a rise in total revenue PED is less than -1 An increase in the selling price reduces the total amount of revenue generated from sales A reduction in the selling price increases the total amount of revenue generated from sales Competitive pricing strategies (opens in a new tab) are best employed for products that are price elastic in demand Price inelastic demand If demand for their products is relatively price inelastic (PED is less than or equal to 1) , raising the price will lead to an increase in total revenue