Tobacco Supply Research Paper

INTRODUCTION

Tobacco products one of dangerous products in the community. It has bad effects on people, however it used widely. use different types of tobacco products will effect and infect his/her body by dangerous diseases, such as: cancer. From long period of time, people used tobacco products as drags so, the number of users become more, so the government wanted to reduce it, by some measures to help people to quit it. Also, there are other factors which effect in the demand and supply for tobacco products. There are determines the quantity of tobacco products that consumers demand which is attract people like: advertising, make gift with product, make discount and Splendor packaging. And there are determines the quantity of a good that

The quantity available, price of tobacco and other resources which determines in demand and supply of tobacco. For example: weather is one of this resources, if there are droughts the tobacco outcome will not be sufficient. So, we cannot control the weather to produce tobacco and the outcome. Also, manufacturing, labors and machines cost all these resources helps determine the supply of cigarettes. As productivity growths, it lowers costs and increases supply. As technology develops though, productivity increases. An example of this the machines used to produce the cigarettes. When the machine is updated, it will increase number of cigarettes, the result will be increase in supply. The greater number of sellers it’s like opportunity for tobacco companies, to increase profit. For example: American people hooked on cigarettes, so it’s easy for companies to increase their profit and prices. Taxes on cigarettes plays a main part on the supply, like New York taxes is high of cigarettes which is 5 cents to $1.51. (Andrea,

There are some ways or policies that reduce the smoking in the community, the governments take some measures to reduce it. Such as: first, total prohibition on tobacco advertising and promotion, it means decrease the advertising which attract people to purchase cigarettes. second, limitations on smoking in public places and in the workplace, may it be dangerous sometimes makes fires (ASH,2003).

Third, make smoking interruption and health education campaigns and large bold health warnings on tobacco products in schools and public places. Next, tobacco taxation, Government should make taxes of tobacco high prices it will help them to reduce quantity of cigarettes and other tobacco products(ASH,2003). Also, high price of cigarettes reduces smoking by decreasing smoking prevalence and reducing the number of cigarettes smoked.