Scribd
Upload
147 views4 pages

Pod - Two Ways To Reduce The Quantity of Smoking Demanded

Two Ways to Reduce the Quantity of Smoking Demanded

Uploaded by

AcademicWriter Hopewell
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
147 views4 pages

Pod - Two Ways To Reduce The Quantity of Smoking Demanded

Two Ways to Reduce the Quantity of Smoking Demanded

Uploaded by

AcademicWriter Hopewell
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

1

Two Ways to Reduce the Quantity of Smoking Demanded

Institution name:

Program:

Student name:

Student number:

Date:
2

Q 1: Analysis Based on Figure 4 graph and the theory of substitutes and complements.

How the quantity demanded changes due to the price change, “Price Elasticity of

Demand” is essential in this case. Nevertheless, this information reveals that adults and teenagers

cut down on smoking when prices go up, which implies a cigarette price elasticity of demand.

However, objectives like involving the public with public service announcements, compulsory

health warnings, and banning cigarette advertisements are ways the demand curve for cigarettes

will shift leftward (Cengage Learning, 2024). These policies are beneficial in reducing the

demand for cigarettes at all price levels. For example, the demand curve in the panel in Fig 4

moves (D_1 \) and \ (D_2 \).

When the price is up to $5 for a pack, the quantity demanded reduces from 20 to 10

cigarettes daily, shifting from point A to B. Consequently, in the theory of Substitutes and

Complements, some people believe that high levels of cigarette prices for marijuana encourage

cigarette usage, as it is a substitute good. Still, studies reveal that low levels of cigarette prices
3

lead to increased consumption of marijuana since it is a complementary good (Global Tobacco

Control, 2014).

Q2: Raising taxes on tobacco has an impact on smoking

The act of raising the prices of cigarettes through taxation causes a change in the quantity

demanded and not the demand curve. This is as shown in panel (b) of Figure 4 above. However,

when the price rises from $5 for a pack of cigarettes to $10 a pack, the number of cigarettes

reduces from 20 to 12 per day, from point A to C, which shows that an increase in price

decreases smoking (Prevent20 Coalition, 2018).

Therefore, by increasing the tobacco taxes, the number of people who smoke decreases,

and it can contribute to the decrease in the usage of other risky products, according to the

complement theory (TOPS Tobacco Online Policy Seminar, 2021). This approach, which

combines public policies and economic principles, only shows the plurality of efficient strategies

in public health.
4

Reference

Cengage Learning, (2024). eTextbook: Principles of Economics. Retrieved from

https://ebooks.cenreader.com/#!/reader/4f43618c-d461-4827-8ff2-3f64fc57c33c/page/

03182c5363849a79a6e1ad7d35259c85

Global tobacco control, (2014). Why Tobacco Taxation Matters. Retrieved from

https://youtu.be/ASnOb0Eur7o?si=fnOShPI--w05n-4Q

Prevent20 Coalition, (2018). Stop Youth Smoking: Raise Tobacco Taxes. Retrieved from

https://youtu.be/Lmo1_zbcce8?si=soVKDLu7vxjngvhL

TOPS Tobacco Online Policy Seminar, (2021). Julia Dennett, "The Long-Run Impacts of

Cigarette Taxes on Smoking" | TOPS #30 | Oct 29, 2021. Retrieved from

https://youtu.be/DM2MP-AxgA8?si=kPU4lFpDNE8TQaXm

You might also like