The government in your country is considering three programs that affect the market for cigarettes Program 1: Media campaigns and labelling requirements aimed at making the public aware of the dangers of cigarette smoking. Program 2: A price support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. The aim of the goverment is to support farmers while reducing the consumption of cigarettes. (i) what program or combination of programs should be implemented? (ii) why?

Survey Of Economics
10th Edition
ISBN:9781337111522
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter4: Markets In Action
Section4.2: Can The Laws Of Supply And Demand Be Repealed?
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The government in your country is considering three programs that affect the market for cigarettes

  • Program 1: Media campaigns and labelling requirements aimed at making the public aware of the dangers of cigarette smoking.
  • Program 2: A price support program for tobacco farmers.
  • Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases.

The aim of the goverment is to support farmers while reducing the consumption of cigarettes.

(i) what program or combination of programs should be implemented?

(ii) why?

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