Question
Through October2014, the U.S. government administered two programs that affected the market for cigarettes. Media campaigns and labelingrequirements, which are still inplace, aim at making
Through October2014, the U.S. government administered two programs that affected the market for cigarettes. Media campaigns and labelingrequirements, which are still inplace, aim at making the public aware of the health dangers ofcigarettes, and until 2014 the Department of Agriculture also maintained price supports for tobacco. Under thisprogram, the supported price was above the market equilibrium price and the government limited the amount of land that could be devoted to tobacco production.
Were these two programs at odds with the goal of reducing cigaretteconsumption?
1.) Using the line drawingtool, draw the effective price support in the market for cigarettes before the media campaigns and labeling requirements produced an effect. Label this'Support'.
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