Your friend Parth smokes cigarettes, which are dangerous for his health. The second-hand smoke from Parth's cigarettes can also be inhaled by others, causing damage to their health. Based on the information provided, which of the following is correct?:

Cigarettes and second-hand smoke are both demerit goods

Cigarettes are a negative externality, while second-hand smoke is a demerit good

Cigarettes are a demerit good, while second-hand smoke is a negative externality

Cigarettes and second-hand smoke are both negative externalities