Either they smoke less or trade down to cheaper cigarettes. That was up from 29 cents in 1996. A quick glance at Alaska's experience suggests that smokers respond to higher prices. After the increase, sales fell in the state. So the decline we're looking at is basically due to the taxes.
People seem to be cutting back or quitting.
Likewise, Oregon more than doubled its cigarette taxes in 1996, up to 68 cents a pack. It's unclear how much further sales will drop. For example, when California raised its tobacco tax back in 1989, cigarette sales dropped sharply, according to a 1998 study in the Journal of American Medical Association. But the downward trend leveled off five years later. Neither Alaska nor Oregon is sure how the tobacco taxes affected teen smoking.