Negative Cigarette Smoking And Consumption â€Myassignmenthelp.Com

Question: Discuss About The Negative Cigarette Smoking And Consumption? Answer: Introduction Beer consumption and cigarettes smoking are some of the factors that are responsible for many deaths in the world every year. Beer consumers have resulted in many accidents that has taken the life of many innocent individuals. The smoking of cigarettes has resulted in many health issues such as cancers and has resulted in many deaths as well. Cigarettes are less expensive than beer and thus are more likely to be abused. There are more deaths that results from cigarettes consumption in comparison to beer consumption. There is a need for the government to raise the social welfare of the citizens by ensuring that it saves as many lives as possible. Saving of these life means discouraging their consumption; it is only achievable through marketing these products more expensive. This paper will determine their relationship and confirm whether the argument posed by the Washington University that discouraging cigarette could reduce beer consumption is true. The beer and wine markets are faced by reduced regulations compared to the cigarette markets. The number of alcohol consumers are lesser than those for cigarette consumers; this explains why there are more cigarette-related deaths compared to alcohol-related deaths. Beer and cigarettes have a complementarity in consumption (Moore, 2010); wines and cigarettes have no close relationship. It is with a high possibility to get a person who is taking beer to be smoking as well. People who are dependent on wine consumption belong to a higher class of life and thus they choose better living standards and thus its difficult for them to indulge in unhealthy behaviors such as cigarettes smoking (Ingraham, 2014). However, for the case of beer and cigarettes smoking the two goods are complements, thus, an increase in cigarettes tax to discourage its consumption also discourages the consumption of beer but at a lesser proportion that the reduction in cigarette smoking. Some people are not satisfie d with just the consumption of beer alone; they feel much better when they complement the beer with other substances as well (Moore, 2010); cigarette is the major choice of complement for beer consumption. Assuming that initially the demand for beer was equal to Q* and the price was P*, initial demand D*, the introduction of health warning on the cigarettes packaging will have the following impact on beer demand. The warning will make the cigarettes consumers to be more cautious and thus their demand for cigarettes will fall at every price level (White, Williams, Faulkner Wakefield, 2014). Since the change in the cigarettes demand results from a change in preference rather than price, the initial demand curve D* shifts leftwards to D1. There is a shift in demand curve for all non-price demand influencers (Chand, 2016). The quantity of beer demanded falls from Q* to Q1 as observed above. Thus the impact of health warning on cigarettes is to reduce the consumption of beer (Wigg Stafford, 2016). Quantity of Cigarettes The initial cigarettes demand was Q* when the price of beer was P*. The shortage of yeast will cause a reduction in the amount of beer produced since yeast is an input for beer production; supply shifts from S* to S1. When supply is low, the selling price rises (Ritenour, 2010). The new beer price will be P1 and will make beer less attractive. Since beer and cigarettes are complementary goods, the demand for cigarettes will also fall. There is a great addiction on cigarettes such that it is difficult for a smoker to spend a day without smoking a few cigarettes. Addictive smokers may prefer cigarettes over food or drinks. The cravings that they have for cigarettes cannot be satisfied by anything else apart from cigarettes. Non cigarette smokers may not be impacted by the presence of such a jail business their normal states will still be maintained at the initial position. New jailers are given only one choice when they arrive in this jail; they have to keep of the cigarettes. According to Dailymail.co.uk (2009), there has been a decline in all kind on crimes since most criminals are cigarette smokers and are frightened to face the tough consequences. Most people who avoid crimes are not fearing the presence of the non-smoking jail, what they fear is the smoking ban. This fear of smoking ban and the sub-sequential decline in crime rate explains the inelastic nature of cigarette demand to the changes in its prices. Even if price was raised to high levels, smokers will always smoke nearly the same quantity smoked before the prices went up. There will be a small decline in cigarette demand after the tax causing the prices to hike. packaging. Conclusion If alcohol and cigarettes are complement goods, then an increase in the cigarette prices will not result in an increment in alcohol consumption but rather a reduction. Beer and cigarettes are inelastic to price changes and thus no matter the price charged, there is still a greater demand by the consumers. This is because these products cause addiction to the users. Their inelastic nature is an advantage to the government as it can be able to raise higher revenues as it saves many lives. References Chand, S. (2016). Effect of Demand Curve on Substitute Goods and Complementary Goods. YourArticleLibrary.com. Retrieved 11 September 2017, from https://www.yourarticlelibrary.com/economics/effect-of-demand-curve-on-substitute-goods-and-complementary-goods-micro-economics/8914/. Dailymail.co.uk. (2009). Drop in crime on Isle of Man attributed to Europe's only non-smoking prison. Mail Online. Retrieved 11 September 2017, from https://www.dailymail.co.uk/news/article-1239209/Drop-crime-Isle-Man-attributed-Europes-non-smoking-prison.html. Ingraham, C. (2014). Want people to drink less? Make their cigarettes more expensive. Washington Post. Retrieved 11 September 2017, from https://www.washingtonpost.com/news/wonk/wp/2014/10/27/want-people-to-drink-less-make-their-cigarettes-more-expensive/?utm_term=.a22995e37523. Moore, S. (2010). Substitution and Complementarity in the Face of Alcohol-Specific Policy Interventions. Oup.com. Retrieved 11 September 2017, from https://academic.oup.com/alcalc/article/45/5/403/184976. Ritenour, S. (2010). Foundations of economics: A Christian view. Eugene, Or: Wipf Stock. White, V., Williams, T., Faulkner, A., Wakefield, M. (2014). Do larger graphic health warnings on standardized cigarette packs increase adolescents cognitive processing of consumer health information and beliefs about smoking-related harms? Bmj.com. Retrieved 11 September 2017, from https://tobaccocontrol.bmj.com/content/24/Suppl_2/ii50. Wigg, S., Stafford, L. (2016). Health Warnings on Alcoholic Beverages: Perceptions of the Healthcare Risks and Intentions towards Alcohol Consumption. Ncbi.nlm.nih.gov. Retrieved 11 September 2017, from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC4841515/.