Case Study:1 (5 Points)
Please read the case “Two Ways to Reduce the Quantity of Smoking Demanded” from Chapter 4 “Supply, Demand, and Market Equilibrium” Page: - 71 given in your textbook – “Principles of Macroeconomics”. The case study presented in the chapter discussed cigarette taxes as a way to reduce smoking. Now think about the markets for other tobacco product such as cigars and chewing tobacco. and Answer the following Questions:
Questions:
1.1. Are these goods substitutes or compliments for cigarettes? (100 – 150 words – 1.25 point)
1.2. Using a supply and demand diagram, show what happens in the markets for cigars and chewing tobacco if the tax on cigarettes is increased. (100 – 150 words – 1.25 point)
1.3. If policy makers wanted to reduce total tobacco consumption, what policies could they combine with the cigarette tax? (100 – 150 words – 1.25 point)
1.4. How can we reduce the consumption of cigarettes in economics? (100 – 150 words - 1.25 point)
Important Note: - Support your submission with course material concepts, principles, and theories from the textbook and at least two scholarly, peer-reviewed journal articles.
Case Study:2 (5 Points)
Please read the case “The Minimum Wage” from Chapter 6 “Supply, Demand, and Government Policies” Page: - 117 given in your textbook – “Principles of Macroeconomics”. A case study discusses the federal minimum-wage law.