Case study Two ways to reduce the quantity of smoking demanded

Quantity of demand Law of demand Variables that influence buyers Shifts in the demand curve VS movement along the demand curve Next page

 Mandatory health warnings on cigarette packages  The prohibition of cigarette advertising on television  Public service announcements ·One way ·Alternative  Raise the price of cigarettes ✪ Ways that public policymakers use to reduce the quantity of smoking demand files

✪ Shift the D curve A policy to discourage smoking shifts the demand curve to the left Price of cigarettes, Per pack $2.00 Number of cigarettes Smoked per day D1D1 D2D2 AB home

✪ Shift the D curve Public service announcements health warnings On packages Advertise ments On TV home

✪ Shift the D curve Public service announc ements health warnings On packages Advertise ments On TV home

✪ Shift the D curve Public service announc e ments health warningshealth warnings On packages Advertisements On TV home

✪ Raising the price of cigarettes A tax that raises the price of cigarettes results in a movement along the demand curve Price of cigarettes, Per pack $2.00 Number of cigarettes Smoked per day D1D1 A C $4.00 home

国家税务总局关于调整烟类产品消费税政策 的通知 甲类香烟乙类香烟雪茄 旧税率 45%30%25% 新税率 56%36% 新规定卷烟批发环节加征 5% 的从价税。 实施时间 2009 年 5 月 1 日 home

我国吸烟状况 基本情况：全国共有 万人吸烟（未包括港、澳、台三地区的吸烟人口）， 吸烟人口约占全国总人口的 24.53% ， 15 岁以下人口的平均吸烟率为 33.88% ， 其中经常吸烟率为 30.83% ，偶尔吸烟率为 3.05% 。 吸烟人口年龄分布 吸烟人口性别分布 home

资料来源： 数据来源：卫生部公布第四次国家卫生服务调查主要结果 我 国 吸 烟 状 况我 国 吸 烟 状 况 home

☺ How people respond to these two methods ? ☺ Who will be influenced by the policies? ☺ Who will quit smoking? home

Key point the elasticity of demand Cigarette is a kind of product that is inelastic. It’s difficult for people to quit it, because it’s hard to find a substitute in a short time, people turn to keep their bad habits,even though the price is high. Those who will be influenced by the high price are usually young people,for they don’t have enough money to support them, and they are not so addictive as the adults. To this degree, Raising the price of cigarettes is very useful to reduce young people to smoke. While,when people notice the disgust pictures and terrible senses,they will feel uncomfortable more or less, some of them may reduce the amount of cigarette they the smoke, but most adults are so addict to it, they won’t give up it as long as they can afford it. The end home