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© SimonXu 管理员   /  2017-9-1 08:15  /   0 人收藏 版权:保留作者信息

From: Espresso 'The economists'


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Heavy tax on harmful goods therefore the supply curve will shift to the left. As a result, if we presume that the demand curve won't move, the new price will be setting higher, so the quantity demand will be decreased, which government may wish, less people smoke. It is a great strategy that reducing the incentives to purchase such harmful goods. Living standard will thereby rises since the social cost, passive smoking of those people around, lowers.
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However, for those people who are addicted smoking, heavy tax is not a good thing. As addicted, they require the cigarettes as the necessity, their living cost will increase.
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