Canadian Anti-Smoking Campaign

1
Canadian Anti-Smoking Campaign
http//www.hc-sc.gc.ca/hc-ps/tobac-tabac/legislati
on/label-etiquette/graph/index-eng.php
2
Presumed Effect of High Cigarette Taxes
/pack
A
2.00
D1
0
20
Packs/day (millions)
3
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4
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5
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6
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7
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8
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9
Scope of Anti-Smoking Campaign Shift Demand
Curve
Price/ pack
Decrease in demand
D1
D2
0
Packs per day (millions)
10
Scope of Anti-Smoking Campaign Flatten Demand
Curve
/pack
If the demand curve is flatter (more elastic) the
same increase in price will case a
greater reduction in demand
D2
D1
0
Packs/day (millions)