Cigarette Price Increase

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Cigarette price increase The article is about the minimum price of cigarettes of RM7 for a pack of 20 cigarettes is not a new measure and has been in place since January 2010. More than half of the minors (53%) said they buy their own cigarettes, while 30% got them from friends in Malaysia, 55% of the adolescent smokers smoke less than 10 sticks per day in Kelantan, 95% of shops sold cigarettes to minors without verifying their age. There are over 80,000 retail outlets selling cigarettes throughout the country and are located near schools. About 31% of teenage boys and 5.3% of girls are smokers. Australia and Singapore have high tobacco tax and successfully reduced smoking among adolescents as a pack of cigarettes costs A$15 (RM38) and…show more content…
Government should make the inspection on them in anytime without informing those so the seller dare not to sell the cigarette to teenager that are below 18 years old. This may make the supply of the cigarette on teenager below 18 decreases and the supply curve will to the left in this situation. There are no other substitute goods for cigarette as smokers only will buy cigarette as they couldn’t find other thing that able substitute the cigarette. Weed is too heavy to substitute the cigarette so it cannot substitute the cigarette and shisha also couldn’t substitute the cigarette as people who like to smoke shisha doesn’t mean that they must be a smoker and the smokers doesn’t mean that they like to smoke shisha. Besides that, some people are addicted on shisha only but some are only addicted on cigarette. Most of the people will only be addicted to either shisha or cigarette but not both so there are very few substitute goods for cigarette so in this situation, the demand for cigarette is perfect inelastic. Tobacco taxes increases smokers still demand on it. The cigarette company are able to earn more as the taxes of tobacco increases but people still demand for it. The increase of the taxes will not affect the quantity of people demand for the cigarette. Besides that, the daily cost of the smoker will increase as the price of cigarettes increase but they still buy it. I think this will cause the
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