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In the last couple of years, private jail e-cigarette vendors have popped up with names like JailCigs and eCigs 4 Inmates and CrossBar. Their pitch to sheriffs is enticing: The companies sell the e-cigarettes to inmates for as much as $15 each -- a 400 percent markup -- and promise commissions as high as 25 percent

Finally, you could mention the potential for access to resources such as skilled labor, raw materials, and other necessary components for production

Alternatively, if the demand is inelastic and the supply is elastic (the cigarette industry) the burden of a new tax falls very largely on the consumers, with most of the tax revenue coming out of consumer surplus

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