Japan announced a national tax increase on cigarettes raising the price by a third. Cigarette sales shot through the roof and has given the economy a little boost. The demand for cigarettes is usually inelastic because smokers want or need their cigarettes and will pay most prices to get them.
Looking at the demand for cigarettes in this case we can see that the people realized there would be a price increase and therefor a reduction in the quantity that could be purchased. Also, considering the inelasticity for the demand of cigarettes these people would still purchase cigarettes even if the price were increased. So, to save money, these consumers started stock piling cigarettes to save some yen.
One consumer purchased 100 cartons and saved approximately $1,300 in potential taxes. Many others are buying what they can with 30 cartons being the norm. This hoarding effect will cause a future drop in sales but things should return to a normal level after the stock piles are smoked. Once this consumption does return to a normal level you should see the quantity demanded decrease from the consumption level that existed before the tax announcement but not by a third, it should be less due to the inelastic nature of cigarette consumption.