[Gabz]

I appreciate your xplanation - I've always had a general idea but have never had it spelled out in such laymen terms. I also agree with everything you say with one exception:

Farmer Brown will take what he can get, the cigarette companies will get their tobacco for less money, and cigarettes will fall in price.

That will NEVER happen.

[mg39]

I wrote: "Farmer Brown will take what he can get, the cigarette companies will get their tobacco for less money, and cigarettes will fall in price."

Regarding falling cigarette prices, you responded, "That will NEVER happen."

You mean you don't trust the cigarette companies to pass along the savings? :)