The governments of the United States and many other countries have chosen to regulate addictive substances, like cigarettes, via taxation; minimum-age purchase laws; restrictions on consumption in schools, the workplace, and public places; and stiff fines for driving under the influence of alcohol. The prices of these substances will rise because of taxation; other forms of regulation, and bans. Thus, measuring their responsiveness to price is important in determining the optimal level of taxation and the impacts of legalization. Contrary to conventional wisdom, studies find that the consumption of addictive substances is quite sensitive to price.
Teen smoking has been increasing since 1991. There are economic, psychological and sociological factors that play an important role in this increase.
Economically, cigarettes are highly advertised, extremely affordable and accessible to practically anyone. As for the advertisement aspect in the sale of cigarettes, tobacco companies spend billions of dollars per year to advertise their brands. This money is spent on the actual advertisement, and
also on manipulating the subconscious minds of teenagers. (Reynolds, 1999) Billboards and magazines lure teenagers to smoke, by using teen idols and appealing photos in their ads. The Canadian Government has been attempting to put a stop to tobacco industries using teen idols in selling their products, by passing Bill C-71, a legislation that forbids tobacco companies from putting up signs for... [continues]
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(1999, 10). Teenage Smoking. StudyMode.com. Retrieved 10, 1999, from http://www.studymode.com/essays/Teenage-Smoking-19748.html
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"Teenage Smoking." StudyMode.com. 10, 1999. Accessed 10, 1999. http://www.studymode.com/essays/Teenage-Smoking-19748.html.