In order to reduce cigarette consumption, govt initiates anti-smoking media campaigns. At the same time it provides price support program for tobacco farmers, pushing price of tobacco above equilibrium. with supply demand framework explain the effect on cigarette consumption.
please say whether u think my answer is right: the impact of media campaign will be on demand for cigarettes. influenced by media campaigns, people will demand less quantity of cigarettes at each price, hence demand curve for cigarettes shifts leftward. again a price support program for tobacco farmers will act as a binding constraint on the market for tobaccos. it will raise quantity of tobacco supplied and lower the quantity of tobacco demanded. therefore output of tobacco will fall. since tobacco is input in making cigarettes,due to a fall in output of tobacco, producers will sell less cigarettes at each price. supply curve of cigarettes shifts leftward. in the market for cigarettes, demand curve shifts leftwards and so does supply curve. therefore equilibrium quantity of cigarettes will fall.
At this point, this answer gets an F.
You're not ee cummings, so you need to use appropriate capitalization.
Some parts are redundant.
I don't get it- 'gets an F' means? In my country we do not follow grade system in colleges so if you could explain what it means. And do point out the parts which are redundant.
How rude to critique punctuation.
Yes, your answer is mostly correct. Let me break it down further using the supply and demand framework:
1. Anti-smoking media campaigns: The media campaigns aim to reduce the demand for cigarettes. As people are influenced by these campaigns, they will demand less quantity of cigarettes at each price. This means that the demand curve for cigarettes will shift leftward.
2. Price support program for tobacco farmers: This program pushes the price of tobacco above the equilibrium price. As a result, more tobacco farmers will be incentivized to produce tobacco. This will increase the quantity of tobacco supplied.
Now, let's look at the effect of these two factors on cigarette consumption:
- Demand curve: Due to the media campaigns, the demand for cigarettes decreases, shifting the demand curve leftward.
- Supply curve: The price support program for tobacco farmers increases the quantity of tobacco supplied. Since tobacco is an input in producing cigarettes, a fall in the output of tobacco will lead to a decrease in the production of cigarettes. This decrease in production will result in a leftward shift of the supply curve for cigarettes.
With both the demand and supply curves shifting leftward, the equilibrium quantity of cigarettes will decrease. This implies that the initiatives implemented by the government, such as anti-smoking media campaigns and price support for tobacco farmers, will result in a reduction in cigarette consumption.