Question

Illustrate, using Consumer choice model, each discussed in dass explanation for changes in Tobacco consumption in Western and developing countries. 3. Changes in prices? Changes in preferences? Changes in budgets? Government regulations Tighter regulations Other tobacco products Health concerns Western Flat Taxes economies Wealth is growing? Lax regulations Developing economies Ad campaigns

Answer 1

The trend in the tobacco consumption varies across the developing and Western Nations of the world. It has been observed that across developing nations the consumption of Tobacco is increasing because of the low tax rates imposed on the consumption of tobacco in developing nations and growing wealth of the people and that tobacco consumption is on the rise.Also, the tax implementation is also weak.

On the other hand, in Western nations where there are tight regulations on tobacco consumption and the overall tax imposed on tobacco consumption is also high, the consumption of tobacco products has declined. People are also more aware and are becoming more and more health concerned.