WO WAYS TO REDUCE THE QUANTITY OF SMOKING DEMANDED

Public policymakers often wan. to reduce the amount that people smoke. There are two ways that policy can attempt to achieve this goal.

One way to reduce smoking is to shift the demand curve for cigarettes and other tobacco products. Public service  nnouncements, mandatory health warnings on cigarette packages, and the prohibition of cigarette advertising on television are an policies aimed at reducing the quantity of cigarettes demanded at my given price. If successful, these policies shift the demand curve for cigarettes to the left, as in panel.

Alternatively, policymakers can try to raise the price of cigarettes. If the government taxes the manufacture of cigarettes, for example, cigarette companies pass much of this tax on to consumers in the form of higher prices. A higher price encourages smokers to reduce the numbers of cigarettes they smoke. In this case, the reduced amount of smoking does not represent a shift in the demand curve. Instead, it represents a movement along the same demand curve to a point with a higher price and lower quantity.

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