P - been affected? People working in restaurants, cafs,...

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P. 37, Q. 1-5 Jacky Chong 1. Define “demand”. Demand is the quantity of a good or service that consumers are willing and able to purchase at a given price in a given time period. 2. With the help of a diagram, explain what has happened to the demand for cigarettes. The demand curve shifts from D1 to D2, which means the demand for cigarettes falls. 3. To what extent can it be argued that the fall in demand for cigarettes is due to the smoking ban? While the smoking ban is established, nothing else is changing. It’s an example of ceteris paribus. Therefore, the fall in demand for cigarettes is due to the smoking ban. 4. Which groups of stakeholders have been affected by the government policy? How have they
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Unformatted text preview: been affected? People working in restaurants, cafs, bars, tobacco farmers, and cigarettes manufacturer have been affected by the government policy. Less smokers will go and consume in restaurant and restaurants, cafs and bars. Less people will buy cigarettes and cigarettes manufacturer will buy less tobacco from farmers and produce less cigarettes. 5. Explain two other policies that the government might use to reduce the demand for cigarettes. Taxation, by taxing the cigarettes manufacturer harsher, the manufacturer will either increase the price of cigarettes or produce less cigarettes. Propaganda, telling citizens the harms of smoking by advertising etc....
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