Bsb113 Economics

The motivation and goals behind the institution of price ceilings may be well intentioned, but the actual implementation can be problematic. If suppliers are not able to charge a high enough price for their goods to make it profitable for them, they may decide that it is not worth the cost to obtain the goods in the first place.

However, when the equilibrium price is beyond the expectation of a fair market value, for reasons of political or social concerns governments will intervene in the market and establish limits on such things as wages, apartment rents, electricity, or agricultural commodities. Government uses price ceilings and price floors to keep prices below or above market equilibrium. (Stone, 2012, page 68)

The legal minimum and maximum prices for goods and services are implemented by governments, in an effort to be able to manage the economy by direct intervention. Price ceilings and price floors are two types of price controls. The legal maximum of price for a good or service is a price ceiling and the legal minimum price of good or service is the price floor. The government may impose both a price ceiling and a price floor but typically only selects one for a specific good or service. Prices are formed by a free market when there is a balance between supply and demand of the good or service. When the legal price is different than that of the market price it will create either an excess in supply or an excess in demand. When a price ceiling is imposed it will create shortages, while having no effect on the quantity supplied. Shortages of goods and services cause consumers to compete robustly over the restricted supply. The shortages arrive from suppliers limiting the supply of goods and services due to the price ceiling, not allowing them to make a profit. The opposite holds true with price floors. Having a price floor creates an excess of goods and services and that allows suppliers to be more agreeable to supply. When price ceilings or price floors are implemented, this can lead to the creation of black markets and inefficient allocation to

Smoking is the single highest cause of preventable death in America and puts users at significantly greater risk for disease compared to the rest of the population. Tobacco use costs the U.S. more than 289 billion dollars annually in medical expenses and lost productivity (Surgeon General, 2014). The problems associated with smoking are due in part to its addictiveness. Nicotine is the addictive substance found in tobacco and its chemical dependence is as strong as heroin, cocaine, or alcohol (CDC, 2014). Getting all smokers to quit entirely is not realistic due to nicotine’s addictive characteristics.

The price ceiling is the maximum price a seller is allowed to charge for a product or service. An impact on society includes when the prices are so high of a product, that no one can buy it. A price floor is the lowest legal price a product or service can be sold at. When market price is at its lowest, it may still be too high for consumers to purchase products. Governments can intervene for any purpose, and they are the ones who set these price controls.

In Australia alone 15,000 people die every year due to smoke related deaths. Smoking kills more people than alcohol, other drugs, murder, suicide, road crashes, rail crashes, air crashes, poisoning, drowning, fires, falls, lightening,

Smoking is one of the leading causes of mortality and morbidity. The exposure to tobacco smoking negatively impacts the health of an individual over time by increasing the risks of developing diseases of the respiratory and circulatory systems (Ministry of Health, 2005). In particular, smoking is the leading cause of lung cancer. With repeated exposure, inhalation of tobacco into the lungs causes a build up of tar, altering lung tissue (Cockerham, 2007; Marmot and Wilkinson, 2006). This direct use of tobacco accounts for the death of 5 million people around the world. In the United States, 444,000 deaths per year are attributed to smoking, were 13 years of life lost for a male smoker and 14.5 years lost for a female (Cockerham, 2007; WHO, 2012). In New Zealand, tobacco use is the main cause of preventable death, contributing to around 4600 deaths

(2014). Charges for plastic bags: Motivational and behavioural effects. Journal of Environmental Psychology, 40. http://dx.doi.org/10.1016/j.jenvp.2014.09.004 0272-4944

In Australia, tobacco is the largest single preventable cause of diseases and death (Australian Bureau of Statistics, 2013). According to the National drug strategy household survey 2013, the prevalence of daily smoking in Australian population over 14

Tobacco smoking is one of the more prominent lifestyle behaviours contributing to health risk in Australia. Circulatory diseases ' health and economic

World-wide efforts have increased to alarm people of the danger in consuming tobacco products, both first hand and second hand. In recent years, reports have proven a decline in smoking. However, there are still millions of people that smoke in the United State of America. As a result, the effect of smoking has become a major health risk. According to the Centers for Disease Control and Prevention (CDC), tobacco use is the leading preventable cause of death, disease, and disability in the US.

Tobacco smoking is a major global public health epidemic (World Health Organisation [WHO], 2015). In addition to the negative effects of second-hand smoke, tobacco smoking is also associated with a multitude of prolonged health diseases like cancer, respiratory problems and even stroke, and accounts for over 5 million deaths annually (WHO, 2015). Of the 1 billion smokers worldwide (defined as those at least 15 years of age who have smoked over 100 cigarettes in their lifetime; Diaz et al., 2009), one in five come from developed countries (WHO, 2015), such as Australia. The reasons for this uphill trend may potentially be a result of lack of education during the 1920’s and also following the wars (International Agency for Research on Cancer [IRAC], 2012, p. 57). Tobacco has been linked with

Smoking is the one of the largest preventable cause of death and illness in Australia, accounting for nearly 15,500 deaths every year. It is responsible for more deaths up to the age of 64 than all deaths attributable to alcohol and illegal drugs consolidated (OxyGen).

Tobacco smoking is one of the major behavioural determinants of health associated disease. In Australia the rates of smoking have decreased over time, many people still continue to smoke although it cannot decrease the health risk problems related to smoking. According to The Department of Health Annual report (2011), Smoking is the most stoppable source of ill health and death in Australia, Smokers could recover in a very short time and the researches also highlighted the ability of the body to repairs once smoking has stopped.

The following literature review will be focussed on both New Zealand-based individual nicotine replacement therapy and population level tobacco taxation attempts in addressing nicotine addiction through tobacco (cigarette) smoking. It will achieve this through special focus on ethnic minority groups such as Māori and Pacific Island populations, as well as low socio-economic populations who engage in smoking cigarettes and are affected disproportionally. Through this, the review will aim to describe and explain the addiction, as well as its’ impact on society. It will also critically evaluate the limitations and effectiveness of past responses and interventions that have been implemented to reduce the prevalence of addicted smokers in New Zealand.