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The Negative Impacts of Cigarette Smoking and Beer Consumption (PDF)

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Added on  2019-11-14

The Negative Impacts of Cigarette Smoking and Beer Consumption (PDF)

   Added on 2019-11-14

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Running Head: Alcohol and Cigarettes RegulationThe Negative Impacts of Cigarette Smoking and Beer ConsumptionStudent NameInstitutional AffiliationCourse/NumberInstructor NameDue Date
The Negative Impacts of Cigarette Smoking and Beer Consumption (PDF)_1
Alcohol and Cigarettes Regulation2The Negative Impacts of Cigarette Smoking and Beer ConsumptionIntroductionBeer 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 making 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.Question Part 1The 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 it’s 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 satisfied 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.
The Negative Impacts of Cigarette Smoking and Beer Consumption (PDF)_2
Alcohol and Cigarettes Regulation3Question Part 2iFig: The shift in demand for complementary goodsPrice of CigarettesP*D1D*0 Q1 Q*Quantity of BeerAssuming 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 inpreference 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).
The Negative Impacts of Cigarette Smoking and Beer Consumption (PDF)_3

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