Pitelis and Antonakis ( 2003 ) suggest that, to the extent that manufacturing is characterized by higher productivity, this leads, all other things being equal, to a reduction in relative cost of manufacturing products, thus a reduction in the relative share of manufacturing ( provided manufacturing and services are characterized by relatively inelastic demand ).
22.
It's very simple, tobacco, alcohol, and other " sinful " things have relatively inelastic demand-that means people buy almost as many cigarettes at $ 6 a pack as they did at $ 3 a pack [ http : / / ajae . oxfordjournals . org / content / 50 / 4 / 888 . short.
23.
"Home video continues to be the major growth engine for entertainment companies, " said Tom Adams, president of Adams Media Research of Carmel, Calif . " Abundant supply, seemingly inelastic demand and some of the canniest marketing to be found in the consumer products arena came together to make 1996 a phenomenal year in the home video industry ."
