Asked by Tyasia Dennis on May 11, 2024
Verified
Suppose the U.S. Government banned the sale and production of cigarettes. What are likely effects of this action on the market for cigarettes?
Cigarette Ban
A cigarette ban is a public policy that prohibits the sale, consumption, and/or advertisement of cigarettes in order to protect public health.
Market Effects
The impact of economic events or policies on the broader market, including changes in prices, demand, and supply.
- Predict the effects of prohibitions on products and their impact on market dynamics and societal welfare.
Verified Answer
EE
ekene enentaMay 16, 2024
Final Answer :
Several changes are likely to happen in the cigarette market. First, the quality of cigarettes sold will decline. Second, the price of cigarettes will rise. Third, the profits of persons selling cigarettes (assuming they are not caught) will rise. Fourth, the rate of violence will increase.
Learning Objectives
- Predict the effects of prohibitions on products and their impact on market dynamics and societal welfare.
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