Supply And Demand For Cigarettes

Satisfactory Essays

Demand, "shows the various amounts of product that consumers are willing and able to purchase at each of a series of possible prices during a specified period of time." (48). Since we know that demand is the amount of a product consumers are willing to purchase we can develop a strategy on cigarettes, that will make the product more difficult for the consumer to buy it. In our organization I feel we should write letters to many government officials and force a increase of taxes of cigarettes. Price plays a major role on the demand for cigarettes because many people will not be able to afford it. Research states that more people with low income smoke rather then higher income people, so with the increase of price on cigarettes it will directly affect the demand because people will eventually have no option, but to quit smoking. …show more content…

A strategy that will directly affect the supply of cigarettes is raising the taxes on businesses that sale cigarettes. If the taxes are raised on businesses that sell cigarettes, then many businesses will stop selling cigarettes to avoid paying higher taxes. If many businesses stop selling cigarettes then it will be harder for smokers to get cigarettes. This will also causes the businesses that still decide to sell cigarettes to have higher prices on the cigarettes causing smokers to not buy them.

I do believe it is possible to alter the supply and demand for cigarettes. I do believe the only way to do this is with the help of government laws. I believe there is no other way to change the supply and demand for cigarettes then raising the prices. Commercials and ads really have no affect on the population but raising the price to a point where it is not affordable gives no other option but to quit

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