In an attempt to curb smoking, governments can use two basic approaches to do so.  The first is to reduce the demand for smoking though public education.  The second is to do so via legal restrictions or taxes.

1. With the aid of two graphs, explain how each type of policy reduces quantity in the affected markets.  What is the result on the price as seen by consumers for each type of policy?

2. Which of these two types of policies is likely to have more long-term success? Why?

Answer rating: 100% (QA)

Impact of Policies on Smoking Market DemandSide Policy Public Education Graph Imagine a standard demandandsupply graph for cigarettes The initial equi... View the full answer