Use ISBN-13: 9780321907950 Research Question: will cigarette taxes have the desi

Question

Use

ISBN-13:

9780321907950

Research Question: will cigarette taxes have the desired effect of reducing the demand for cigarettes?

Select an article at least 500 words long that will help you to answer your research question. Be sure you have read Chapters 7 – 10 in the text, including the Practice Exercises and the authors’ analysis of those exercises. You will submit a paper in the same format used by the text’s authors. Your paper will also include your article reference in APA format. Use a NoodleTools account for this. It is located in your Blackboard menu. Your analysis will include a description of:

the issue,

the conclusion,

the author's reasoning for drawing that conclusion,

the fallacies in the author’s reasoning,

an evaluation of the evidence,

and the rival causes that one could draw using the same evidence.

Article: http://theatticabovemyshoulders.blogspot.com/2014/12/cigarette-taxation.html

Explanation / Answer

In the article “Cigarette Taxation”, by Nasser Al Kuwari, he points out that the cigarette does not experience the elasticity of demand. Even when the government increases the tax on the product, the demand of the cigarette does not decrease. The demand of the cigarette does not experience any effect from substitution or the elasticity when the prices increase as the consumption of the cigarette is a necessity for its consumers.

                The reasoning that the author uses to point out the inelasticity of the demand of the cigarette is that only the adults with the capability to back their demand with the income are the consumers who decide the prices for the cigarettes. The author points out that only when the consumers realize that their health is getting affected from their habit of smoking the individual will give up smoking and an effect of elasticity will be noted in the consumption of the cigarette. The author also points out that the closest substitute that the cigarette has is cigar and cigar are considered as a luxury item and the general people cannot substitute the cigarette for a higher priced goods.

                The fallacy in the assumption of the author are the presence of several another substitute for the cigarette, consumers can switch to chewing tobaccos or give up smoking at all. The article by Richard Trubo, “Alternatives for Giving Up Cigarettes Have you tried unconventional approaches to stop smoking?” points in the direction of the unconventional alternatives to cigarettes. When the prices of the cigarette increase the consumer can choose to quit cigarette.

Related Questions

Navigate

• Browse (All)
• Browse U
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.