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Ciger taxes and other tobacco taxes
1.
2. Ans : Yes, Cigars and chewing tobacco are
substitutes.
3. b). Using a supply and demand diagram, show
that happens in the markets for cigars and
chewing tobacco if the tax on cigarettes is
increased.
4. The supply and demand diagram that shows what happens in the market for
cigars and chewing tobacco if the tax on cigarettes is increased.
When cigarettes’ tax increase
,cigars & chewing tobacco
demand curve shift to right
Price of
cigars &
chewing
tobacco
D2
D1
Supply curve
P2
E1
P1
E
0
Q1
Q2
Quantity
demanded of cigars
& chewing tobacco
5.
If policy makers wanted to reduce total tobacco
consumption, they could combine these policies
with the cigarette tax..
Excise taxes on cigarettes and other tobaccos
products such as cigars, chewing tobacco, and
other complementary goods.
Recommend and
permitted that be sold
only no branded cigarettes
6. Prevent black markets
Smoking age must be over 18.
Prohibit smoking in public areas (hospital
, school, etc..) and open enclosed smoking areas
in public platform.
7. Improve health awareness and distribute
dangers of smoking among young people
through with media and ban all tobacco
advertisings in media.
Encourage and advertise using
other substitutes for withdrawal
period such as -electronic
cigarette , ...