close
test_template

The Impacts of Politics on The Business of Tobacco Regulation in Hawaii

download print

About this sample

About this sample

close

Words: 585 |

Page: 1|

3 min read

Published: Nov 22, 2018

Words: 585|Page: 1|3 min read

Published: Nov 22, 2018

In a capitalistic society where competitive markets are encouraged and plentiful, like in the United States, the government still has the ability to influence behavior of the markets by way of legislative policy. These influencers can take many forms including passing laws that restrict access to certain products. This is the case in Hawai’i County’s recent decision to change the legal age to purchase tobacco products from eighteen, the status quo for most of the country, to twenty-one.[1] Such a change in policy has economic impacts on the tobacco market in Hawai’i County which include a decrease in overall demand and social surplus.

'Why Violent Video Games Shouldn't Be Banned'?

A simple economic model is used to represent these impacts on the tobacco market. The model includes the supply and demand curves of tobacco products at the original, status quo with the legal age of consumption being eighteen and the adjusted demand curve to represent the demand for tobacco at the new legal age of consumption of twenty-one. The model relies on a few basic assumptions, the first being that the new restrictive law will actually be enforced. If the new consumption age is not enforced, the same number of consumers will purchase tobacco and no economic change can be identified in the market. Secondly, it must be assumed that no large change in population occurs in Hawai’i County. A large change in population may lead to a shift in demand that is not caused by the implementation of the new law. In order to show general trends a specific price and quantity for tobacco products was omitted.

The shift in demand to the left, represented by D2, is caused by the removal of all tobacco consumers ages eighteen to twenty from the market. The shift is small because of the relative inelasticity of tobacco demand due to its addictive nature. Because of the addictive nature of tobacco, many underage consumers may find ways to continue buying tobacco in the market through other, legal buyers or by use of fake identification. Others may purchase their tobacco in another market with less restrictive laws such as a neighboring county or an unregulated black market, again producing a shift in demand of the Hawai’i County tobacco market. The demand shift results in a loss in social surplus, mostly effecting the consumers, which is indicated by the shaded portion of the graph. The overwhelmingly negative effect on the consumer makes sense considering a portion of the consumer population is completely restricted legally from the market by this law.

Get a custom paper now from our expert writers.

The model shows that the new Hawai’i County tobacco policy, which changes the legal age to purchase tobacco from the status quo, eighteen, to twenty-one will have an overall negative effect on the tobacco market as a whole. This is due to the decrease in number of total buyers in the market. This model cannot, however, predict the long term effects of the policy which are much more open to speculation. Underage consumers may find new ways to buy tobacco in the market or tobacco sellers may choose to not abide by the law in order to sell more. Both actions would drive demand closer to its levels before the implementation of the tax. Whether or not the new Hawai’i County policy will last is also up for debate. Backlash from angry consumers or pressure from firms may influence policymakers to repeal the law and go back to the status quo. For the time being, Hawai’i County and its tobacco market remain a unique example of political influence over economics.

Image of Dr. Oliver Johnson
This essay was reviewed by
Dr. Oliver Johnson

Cite this Essay

The Impacts Of Politics On The Business Of Tobacco Regulation In Hawaii. (2018, November 05). GradesFixer. Retrieved July 15, 2024, from https://gradesfixer.com/free-essay-examples/the-impacts-of-politics-on-the-business-of-tobacco-regulation-in-hawaii/
“The Impacts Of Politics On The Business Of Tobacco Regulation In Hawaii.” GradesFixer, 05 Nov. 2018, gradesfixer.com/free-essay-examples/the-impacts-of-politics-on-the-business-of-tobacco-regulation-in-hawaii/
The Impacts Of Politics On The Business Of Tobacco Regulation In Hawaii. [online]. Available at: <https://gradesfixer.com/free-essay-examples/the-impacts-of-politics-on-the-business-of-tobacco-regulation-in-hawaii/> [Accessed 15 Jul. 2024].
The Impacts Of Politics On The Business Of Tobacco Regulation In Hawaii [Internet]. GradesFixer. 2018 Nov 05 [cited 2024 Jul 15]. Available from: https://gradesfixer.com/free-essay-examples/the-impacts-of-politics-on-the-business-of-tobacco-regulation-in-hawaii/
copy
Keep in mind: This sample was shared by another student.
  • 450+ experts on 30 subjects ready to help
  • Custom essay delivered in as few as 3 hours
Write my essay

Still can’t find what you need?

Browse our vast selection of original essay samples, each expertly formatted and styled

close

Where do you want us to send this sample?

    By clicking “Continue”, you agree to our terms of service and privacy policy.

    close

    Be careful. This essay is not unique

    This essay was donated by a student and is likely to have been used and submitted before

    Download this Sample

    Free samples may contain mistakes and not unique parts

    close

    Sorry, we could not paraphrase this essay. Our professional writers can rewrite it and get you a unique paper.

    close

    Thanks!

    Please check your inbox.

    We can write you a custom essay that will follow your exact instructions and meet the deadlines. Let's fix your grades together!

    clock-banner-side

    Get Your
    Personalized Essay in 3 Hours or Less!

    exit-popup-close
    We can help you get a better grade and deliver your task on time!
    • Instructions Followed To The Letter
    • Deadlines Met At Every Stage
    • Unique And Plagiarism Free
    Order your paper now