BUSINESS ARTICLE

Supply and Demand, Unintended Consequences

Supply and Demand, Unintended Consequences

Introduction

In this article the Australian Government focuses to reduce the demand of the cigarette in the market, as this is the long term affect on the industry and could bring into the most complicated situation for the survival in the market. It is observed in this article that government is trying to reduce the demand without concentrating the other factors such as pricing and supply of the cigarette. With the help of demand the other factors ultimately get affected and bring the price and supply of the cigarette into the inappropriate condition for the industry.

Discussion

Packaging and images on the products are plays an important role for the buyer. Because of the product packaging and the images on it, will attract and urges the customer or the user to buy it. This is also happen that most of the time people buy the products only because of the tactics of the products. Similarly, the same happen for the packaging of the cigarette as smoking habit are very common in our society, but this is not wrong to say that smoking is the serious problem for the entire world. Since, many countries and non government organisations are also participating for the activities to reduce the demand of smoking/ cigarette.

Smoking is very dangerous for the health of the people, on the other hand it is very famous and people are in the habit of smoking. Not only the elder people but also the youngsters and teenagers are found in the habit of smoking (Mankiw, 1998, pp. 240-270). It is harmful for the health of all the categories of the people regardless of their ages, but there are certain chances which are more harmful for the health of the youngsters because they are at the age of growing and developing. Australian government is taking the serious action for smoking and ultimately hitting the demand of the cigarette.

This is observed that most of the youngsters are attracted to the smoking and will continue this habit for long, because the youngsters of today would become the mature people for the future and addiction is itself considered to be the disease. Moreover smoking in the age of developing is affecting the individual as well as the nation.

As observed that packaging of cigarettes also appeals the people to smoke instead of mentioning warnings on it. This habit is refers to the group of people and consider to be the famous for the masses of the society. People are addicted for smoking and some of them are very brand conscious and some are not actually brand loyal they just want to fulfil their need or addiction by smoking, although smokers are usually aware of the diseases and the adverse effect which can be occur on their life (Cachon, Terwiesch, 2009, pp-105-201). As anti smoking campaign and the laws for making the uniform packaging is not basically the activity or planning to stop or eliminate the business of the smoking ...