Cigarette Tax

Any change that lowers the quantity that buyers wish to purchase at any given price shifts the demand curve to the left.

Apple is an American multinational corporation which designs, manufactures and markets a range of consumer electronics and software products (Apple Inc., 2008). At the end of last fiscal year, Apple’s worldwide annual sales amounted to $32.5 billion, an increase of 35% from 2007 (Apple Inc., 2008). Not surprisingly then, was Apple voted America’s most admired company, also topping the global survey (Fortune,

According to the Organization of Intelligent Economists, price expectation would be one of reason on the changing prices of goods specifically on loaves. When there is expectation of price change, if people expect the price of the good to increase in the near future, then they are more likely to purchase sooner, which would increase the

This article is very informative toward the purpose of increasing excise taxes. I believe that Joey Connor did an excellent job at pointing out the effects of the tax increase on tobacco products. He provided information on previous tax rates, so readers can have a clear idea of the increase percentage of taxes. He also supported his arguments by incorporating other sources in his article. For instance, he incorporated the analysis done by the National Public Radio on how the increase in price of cigarettes will affect the consumer behavior.

History has proven that government penalties, in the form of taxes, deter smoking. The 2000 U.S. Surgeon General’s Report, Reducing Tobacco Use, found that raising tobacco-product prices decreases the prevalence of tobacco use, and tobacco tax increases produce significant long-term improvements in health. From its review of existing research, the report concluded that raising tobacco taxes is one of the most effective tobacco prevention and control strategies (7). Along with price increases, mass-media campaigns and smoking bans have made cigarette smoking pretty much unacceptable in today’s society. “Today, approximately 22 percent of adults age twenty-two and older are smokers, compared with 33 percent in 1979” (Thorpe 1440). It is clear, from these examples, the use of penalties to deter the unhealthy behavior of smoking is a successful intervention.

Red line goes up. Not enough supply. New equilibrium point (higher on the price axis) *shift to the right. * price increase and quantity increase.

This causes the price and the quantity move in opposite directions in a supply curve shift. Also, if the quantity supplied decreases at any given price the opposite will happen.

When quantity supplied do not equal quantity demanded the outcome is either excess supply or excess demand, and a tendency for price to change. As this happen the consumers will increase their quantity demanded, and the movement toward equilibrium caused by excess supply is both the supply and demand sides. When the excess supply occur quantity supplied is greater than quantity demanded. While the reverse of excess demand quantity demanded is greater than quantity supplied. The excess demand pushes prices upwards in decreasing the quantity demanded and increasing the quantity supplied. This movement takes place along both the supply curve and the demand curve.

In the article “Apple Forecasts First Sales Drop Since 2003 on iPhone Slowdown” by Adam Satariano he discusses many factors contributing to Apple’s first sales decline in over 13 years and what steps they plan to take to recover. Apple’s revenue was expected to produce $55.5 billion this quarter but the company believes it will be $50-$53 billion dollars (Satariano, “Apple Forecast”). This decreased is believed to show signs of saturation in the smart phone market. Along with iPhones, Apple also had a pause in its iPad and Mac sales last quarter (Satariano, “Apple Forecast”). Apple is still overwhelmingly profitable but they cannot rely on the adoption of smart phones to carry the iPhone sales anymore.

A new study from the University of Minnesota Run by R.J. Reynolds in the economics department found in 2011 That in all the states that have significantly raised their cigarette taxes 10 percent , Almost all pack sales have gone down sharply, Except the least selling brands. While some of the decline in pack sales comes from most interstate smuggling and from smokers going to other lower-tax states to buy their cigarettes, reduced consumption and will save your live with health benefits by 7 years from smokers quitting and cutting back plays a more powerful role. R.J. Reynolds says, “If prices were 10% higher, 12-17 incidence youth smoking would be 11.9% lower”( Reynolds 1). It is clear that price has a pronounced a very large impute on smoking of teenagers and young adults, that the goals of reducing teenage smoking and balancing the budget would both be served by increasing the Federal excise tax on cigarettes. Even though there are other bigger factors to look up to , Looking at all the big trends from cigarette price trends and overall consumption in the U.S. from 1969 to 2010 shows that there is strong connection between increasing cigarette taxes , decreasing consumption and major health benefits. Reynolds says Smokers are two to four times more likely than nonsmokers to develop coronary heart disease. Even low levels of tobacco exposure, including occasional smoking or

Our analysis of Apple Inc. will incorporate the general overview of the company and how it records it revenues. We will observe how they make an honest effort to be within compliance of all accounting standards according to the Financial Accounting Standards Board for recording and disclosure of its income. Apple’s leading competitor, Google Inc., will also be examined to see whether they are comparable to Apple and still within compliance of the Securities and Exchange Commission and FASB for revenue recognition. Apple takes on design, development and marketing of personal computers, portable digital music players, and media devices that exceed the reach of everyday needs. The company also

Recently, there has been a new trend in the tobacco industry in Australian society due to the increased prices of cigarettes, mainly for the reason that “with more than 3.1 million people still smoking today, tobacco still being the leading cause of death by a wide margin… “ (Scollo & Winstanley, p.xiii, 2008). Therefore, this report will illustrate the market structure of Australia tobacco industry, and then make analysis about the price chances on the demand and supplies for cigarettes. The third and the fourth part of the report are about the impacts of this change and some government policies for the tobacco industry, respectively.

We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.

Many different studies with different types of data and from different countries confirms unequivocally a negative correlation between cigarette consumption and cigarette prices. The price elasticity is highest among young people compared to older people who here is 30 + year olds, due to much higher price effect of smoking onset,

The Apple Company has been the leading innovator in the businesses of computing, mobile communication applications and digital media distribution for more than a decade. And from this position, many of its product releases signal the release of new and important technological developments in the marketplace. However, for several years and particularly underscored by the passing of founding visionary Steve Jobs, Apple has been accused of treading water with its most recent product releases. This would be magnified by customer grievances with the unsatisfying product changes driving the release of the iPhone 5 in 2012.