Conclusion Supply and demand is perhaps one of the most fundamental concepts of economics and it is the backbone of a market economy.
Price Elasticity of Demand: Analysis Price Elasticity of Demand: Analysis 5 May Tobacco Cigarette smoking is widely recognized as the number 1 cause of cancer in the United States.
One method the government can use to reduce cigarette smoking is to tax cigarettes. Read the Chaloupka article and answer the following essay prompts about the effect of taxation on cigarette smoking.
Each answer should be two to three paragraphs each. A paragraph must consist of at least four sentences. We will write a custom essay sample on Price Elasticity of Demand: Cite elasticity of demand estimates from the article to support you nswer. I believe that the cost of cigarettes in todays bad economy have more of an impact on young adults versus adults.
Young adults make less money and are less economically stable than adults. I believe it would be easier to sway young adults from smoking because of financial inadequacies as well as the fact they are less likely to be as addicted as adults based on the time of length smoking.
The article lumps components youth access into 9 laws. Even so, from tothere has been little progress, therefore discrediting the tactics. The paper also looks at data from the U. Some articles have found that cigarette smoking mitigation is more effective in lower income countries in that income plays a very crucial and more predominant role.
More specifically, young African American men seemed to have been the most responsive to price increases. The government should tax all tobacco related products including smokeless tobacco.
They should also tax delivery methods including pipes, bongs, rolling paper, and anything else associated with delivering tobacco into the system. It is widely established and accepted that all tobacco causes cancer so taxing it makes sense. Taxing devices associated with tobacco also makes sense as an additional deterrent.
There has not been an xact reason established for alcohol contributing to cancer but it is likely that alcohol causes cancer by increasing hormone levels.
Another thought is that it may be carcinogenic because of the way in which alcohol is metabolized, which might make certain cells more susceptible to tobacco carcinogenic.
Types of cancer that alcohol might have the most impact on are oral and pharyngeal. For these reasons, products related to tobacco as well as alcohol should be taxed by he government in an attempt to mitigate cancer. What does this mean for the likely impact of taxes on long-term cigarette use?
Research shows that increases in the price of tobacco products induces a considerable reduction in smokers, or quantity consumption. This shows that the demand for tobacco products is elastic and susceptible to price intluencing. Since price increases nave historically been beneficial in decreasing demand for tobacco, it is prudent to continue to trend in the most efficient means necessary.
The population of tobacco users as a whole is large, therefore even the smallest percentage of changes in behavior can have large health impacts from a pure quantity standpoint. Smoking is a luxury that even though can be addictive, there still remains a level of volunteerism that makes consumers able to react to higher costs.
Especially in this state of the economy, it is easier today to be influenced by price increases than it has been in the past. There would also be a positive impact on young adults and new smokers.
The incentive to start smoking will not be very enticing because of the high price of tobacco.Supply and demand are perhaps the most fundamental concepts of economics, and it is the backbone of a market economy.
Demand refers to how much (or what quantity) of a product or service is. Economics: Supply and Demand and Market Price Essay Economics: Supply and Demand and Market Price Essay Essay on Economics: Supply and Demand and Demand Lower Price o c n mi c eo o c r s S metr e s 1 e 21 01 sc a ch n TABLE OF CONTENTS Introduction 2 Supply and Demand 3 Elasticity 5 Government Intervention .
product demand function. The task of demand analysis is distinguish between changes in the quantity demanded (movements along a given demand curve) and G = Government Policy N = Number of People in the Economy W = Weather Conditions.
MELec4_5: Optimal Pricing and Elasticity Page: 8. Topics covered include economic theories of the firm, the consumer, and the market, demand models, discrete choice analysis, cost models and production functions, and pricing theory.
Aggregate demand is the sum of four components: consumption, investment, government spending, and net exports. Consumption can change for a number of reasons, including movements in income, taxes, expectations about future income, and changes in wealth levels.
His duties include market analysis, program devel-opment, and the definition of strategies for government accounts of all sizes. acterize successful plans for becoming an on demand government. Chapters 4 and 5 provide examples from the public and private sectors that illustrate the.