Answer to Question #299713 in Microeconomics for teeds

Question

The Jamaican government administers two programs that affect the market for cigarettes. Advertisements and labeling requirements which are aimed at making the public aware of the dangers of cigarettes. At the same time, the Ministry of Agriculture limits the amount of land that can be devoted to tobacco production. Are these two programs useful in the goal of reducing cigarette consumption? 

Answer 1

Advertising and labelling requirements are important but not an effective way if reducing the consume of cigarettes. This is because even though the public becomes aware through such advertisment about the dangers of cigarettes, the effect of such movement is in two fold. One is the increase in consumption of cigarettes (which should have had a reducing effect). Two is the backdoor policies of corrupt officials who profit from the sales of such commodities.

Limiting the amount of lands available for the production of tobacco would surely reduce the consumption of cigarettes. This is because such lands are needed in large quantities for the production of such of goods. A reduction in the available land for growing them inadvertently reduces the volume of production which has an effect on the general supply of cigarettes to the public.