Question

1. The cigarette taxes are a way to reduce smoking. Now think about the markets for...

1. The cigarette taxes are a way to reduce smoking. Now think about the markets for other tobacco products such as cigars and chewing tobacco. a. Are these goods substitutes or complements for cigarettes

0 0
Add a comment Improve this question
Answer #1

Cigarettes are taxed so that the aggregate demand for cigarretes goes down since it is a demerit good (as it does harm due to consumption). However, cigarettes have close substitues such as the aforementioned- cigars and chewing tobacco. The contents of both these products are extremely similar to that of cigarettes and thus they can be consumed in place of cigarettes since the price of cigarettes is higher due to the tax imposed on them.

Complements are those goods which are used to complement another good i.e. to consume together. An example of complements is sugar and coffee. However, in our case, we have a case of substitutes with cigs and tobacco products.

Add a comment
Know the answer?
Add Answer to:
1. The cigarette taxes are a way to reduce smoking. Now think about the markets for...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Topic: Tobacco products The government's tax/subsidy policy in these areas and any objectives of the tax...

    Topic: Tobacco products The government's tax/subsidy policy in these areas and any objectives of the tax policy. In the United States, federal, state, and local governments tax tobacco. Tobacco products are taxed in two ways: the unit tax, which is based on a constant nominal rate per unit (that is, per pack of cigarettes), and the ad valorem tax, which is based on a constant fraction of either wholesale or retail price. Currently, federal taxes on cigarettes, small cigars, and...

  • Critics of the tobacco industry allege that in developing markets cigarette manufacturers create special tobacco blends...

    Critics of the tobacco industry allege that in developing markets cigarette manufacturers create special tobacco blends that contain additives to give an extra "kick." If true, such practices put the "standardization-versus-adaption" issue in an unusual perspective. 1. If tobacco companies adapt their products in this way, do you think this practice is ethical? 2. Can you think of companies in other industries that change the contents of their products to appeal to buyers? This week's discussion is based on material...

  • 1. A researcher is interested in the relationship between cigarette smoking and BMI (kg/m2) in adolescents....

    1. A researcher is interested in the relationship between cigarette smoking and BMI (kg/m2) in adolescents. In order to test his hypothesis, the researcher decides to divide cigarette smoking into four groups based on the number of cigarettes smoked per day versus a control group of never smokers. The following incomplete ANOVA table summarizes a preliminary analysis for the difference in mean BMI for the groups. Sum of Squares df Mean Square Between Groups 54 Within Groups 38 Total 197...

  • 2-2 CVS CAREMARK DISCONTINUES THE SALE OF TOBACCO PRODUCTS According to the American Cancer Society, smoking...

    2-2 CVS CAREMARK DISCONTINUES THE SALE OF TOBACCO PRODUCTS According to the American Cancer Society, smoking has resulted in $96 million in health care costs from 2000 to 2014. A well-established link exists between tobacco use and cancer. Public awareness of the dangers of smoking has led to shifting cultural norms, such that smoking is increasingly viewed as negative. Cigarette smoking in the United States has been on the decline since the 1950s. However, about one out of five Americans...

  • Lung Cancer & Smoking Case Study A causal relationship between cigarette smoking and lung cancer was...

    Lung Cancer & Smoking Case Study A causal relationship between cigarette smoking and lung cancer was first suspected in the 1920s on the basis of clinical observations. To test this apparent association, numerous epidemiologic studies were undertaken between 1930 and 1960. Two studies were conducted by Richard Doll and Austin Bradford Hill in Great Britain The first was a case-control study begun in 1947 comparing the smoking habits of lung cancer patients with the smoking habits of other patients. The...

  • 1.Governments often claim that they impose high taxes on cigarettes because smoking is bad for your...

    1.Governments often claim that they impose high taxes on cigarettes because smoking is bad for your health. They claim that the high taxes are intended to discourage your consumption. Use your understanding of the elasticity of demand to dispute this claim, assuming that cigarettes have a very inelastic demand. Illustrate with a graph. Hint: Very inelastic is not the same as inelastic or perfectly inelastic. 2.Supposing that Canada and China were the only two countries in the world, why would...

  • 1.Governments often claim that they impose high taxes on cigarettes because smoking is bad for your...

    1.Governments often claim that they impose high taxes on cigarettes because smoking is bad for your health. They claim that the high taxes are intended to discourage your consumption. Use your understanding of the elasticity of demand to dispute this claim, assuming that cigarettes have a very inelastic demand. Illustrate with a graph. Hint: Very inelastic is not the same as inelastic or perfectly inelastic. 2.Supposing that Canada and China were the only two countries in the world, why would...

  • 1. Consider regulations designed to reduce mortality. Given what you know now about how people assess...

    1. Consider regulations designed to reduce mortality. Given what you know now about how people assess risk in their lives, and which behaviors have the highest risk relative to the behaviors that are regulated, how effective do you think current health & safety regulations are?

  • 1) Which of the following statements best describes the concept of “post-fall syndrome”? A condition commonly...

    1) Which of the following statements best describes the concept of “post-fall syndrome”? A condition commonly associated with medication use in the elderly A condition that causes the person to walk at a dangerously fast pace A distinct gait pattern and an expressed fear of falling when standing erect A medical emergency requiring prompt hospitalization 2) Bed and chair alarms have been proven by research to be the most effective way of preventing falls in older adults True False 3)...

  • Harriet And Smoking Cessation This chapter’s case study demonstrates the usefulness of the Ecological Model and...

    Harriet And Smoking Cessation This chapter’s case study demonstrates the usefulness of the Ecological Model and its interaction with individual-focused interventions, and it also draws together information from other models discussed in the chapter. The case study is presented in segments of a life course as well as an episodic perspective of factors involved in the case. It provides a perspective of the social changes that allow individual behavior changes to succeed, while also examining some of the processes involved...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT