Thesis Help! Economics research paper on supply and demand theory.

Question

I decided to choose the topic, increasing the cigarette tax. I did so because I have found it interesting when hearing people discuss this topic. The smokers tend to say they will not be able to afford to continue smoking. However, I have noticed that even when the tax is raised and the prices continue to climb they continue to smoke. The increase price seems to deter people for starting to purchase the product but doesn’t seem to change those who currently use tobacco.

Thanks!

Answer 1

Well the obvious approach would be to create a thesis based around supply and demand, ie, price increase not affecting smokers because they're addicted and therefore have to get their fix.  Therefore, cigarette tax increase is just a money grab and won't deter smokers from smoking, but in the long run will reduce the amount of smokers because there will be less people startingot smoke.  

Key point, increased cigarette tax is a long term solution to reducing the amount of smokers.  or Increased price doesn't deter those who are addicted to the product.

Answer 2

If it is true that they continue to pay for cigarettes even at a higher price, then they have to make up for it by purchasing less of something else, say fast food. There is a graph that displays this relationship in economics.

Answer 3

If the item becomes a need instead of a want in the customers eyes it will change the priority of the product therefor the price can increase without there being much change in selling. They will always demand.

Answer 4

Well you could state that instead of quitting smoking smokers tend to cut other things out of their budget. They also find alternatives to their smoking purchase ie. instead of buying packs they might buy bulk tobacco and make their own cigarettes. Also there is the fact that most smokers are low income so it is truly taxing on the poor. Well whatever hope that opened ideas for you