Good point, but you're leaving out the effects of taxes and regulation on prices. Cigarettes are jaw-droppingly expensive in Australia because the government w

Good point, but you're leaving out the effects of taxes and regulation on prices. Cigarettes are jaw-droppingly expensive in Australia because the government wants as few people smoking as possible. The icky labels on packages don't make it very attractive either. Whereas in America, cigarettes can range in price from annoyingly pricey to cheap as dirt, especially if you buy in southern states or Native American reservations (another price distortion).