Question

CALIDlem 5.3 Question Market for Cigarettes Through October 2014, the US government administered two programs that affected the market for cigarettes. Media campaigns and labeling requirements which are still in place, aim at making the public aware of the health dangers of cigarettes, and until 2014 the Department of Agriculture also maintained price supports for tobacco Under this program, 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 cigarette consumption? 1.) Using the line drawing tool draw the effective price support in the market for cigarettes before the media campaigns and labeling requirements produced an effect Label this "Support 2) Using the line drawing tool illustrate the effect of the media campaigns and labeling requirements on the market for cigarettes. Properly label this line Carefully follow the instructions above and only draw the required objects Dcigaretes Selected: Line tool Delete Clear ? ne grane

Answer 1

DATE PAGE No support fequilibriumf Deignetta d2Q Q Puthent shows the support price for cigarettes. It is greater than the equilibrium price and successfully reads to the reduction in quantity of agarettes from @ to di * The backward shift of demand curse of igarettes from D to a chairs the effect of media campaigns It also succesfully reduced the qu cigarettes og to a since both the policies have sucessfully reduced the quantity of cigarettes, they are not contradictory to each other. I antity