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Please read the case Two Ways to Reduce the Quantity of Smoking Demanded P The case study presented in the chapter discussed cigarette taxes

Please read the case "Two Ways to Reduce the Quantity of Smoking Demanded" " P The case study presented in the chapter discussed cigarette taxes as a way to reduce smoking. Now think about the markets for other tobacco product such as cigars and chewing tobacco. and Answer the following Questions:

Questions:

  1. Are these goods substitutes or compliments for cigarettes?
  2. Using a supply and demand diagram, show what happens in the markets for cigars and chewing tobacco if the tax on cigarettes is increased.

3:If policy makers wanted to reduce total tobacco consumption, what policies could they combine with the cigarette tax?

4: How can we reduce the consumption of cigarettes in economics?

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