Penn and Teller explain a simple trick

From Wired, the Neuroscience of Illusion:

One of the first tricks in Penn and Teller's Las Vegas show begins when Teller — the short, quiet one — strolls onstage with a lit cigarette, inhales, drops it to the floor, and stamps it out. Then he takes another cigarette from his suit pocket and lights it.

No magic there, right? But then Teller pivots so the audience can see him from the other side. He goes through the same set of motions, except this time everything is different: Much of what just transpired, the audience now perceives, was a charade, a carefully orchestrated stack of lies. He doesn't stamp out the first cigarette — he palms it, then puts it in his ear. There is no second cigarette; it's a pencil stub. The smoke from the first butt is real, but the lighter used on the pencil is actually a flashlight. Yet the illusion is executed so perfectly that every step looks real, even when you're shown that it is not.

Penn and Teller demonstrate the seven basic principles of magic.

The trick is called Looks Simple, and the point is that even a puff on a cigarette, closely examined, can disintegrate into smoke and mirrors. "People take reality for granted," Teller says shortly before stepping onstage. "Reality seems so simple. We just open our eyes and there it is. But that doesn't mean it is simple."