Analysis of the smoking ban effect

"On the 26th March 2006, smoking was forbidden in enclosed open public places in Scotland. " This article will consider different aspects of this ban, including a factor of the level to that your theory of externalities can be used to justify federal government legislating on smoking, an evaluation and description of the short run impact of the smoking ban on market for liquor sales in pubs and golf clubs, the marketplace for cigarettes and the marketplace for chewing gum and, finally, an explanation on whether the smoking ban would have any effect on the production likelihood curve. All this will generate an economic understanding into the effects of the 26th March 2006 smoking ban.

Firstly, the idea of externalities will be looked at as externalities have emerged in almost every area of monetary activity, therefore are also important to examining the effects of the smoking ban in enclosed open public places. Garratt and Sloman (2010, p. 517) establish them as "costs or great things about production or usage experienced by population but not by the companies or consumers themselves. Externalities will probably cause market inability if the full public costs and public benefits of development and consumption are not taken into consideration. Friendly cost includes all the costs of development of the result of a specific good or service. We include the external costs arising, for example, from pollution of the atmosphere. Hence, it is important to consider how this theory of externalities justifies the federal government legislating on smoking. Cigarettes in the united kingdom have a massive taxation rate - in 2009 2009, 10. 5 billion pounds were brought up in tax revenue from tobacco for the UK authorities. People usually tend to smoke a great deal when they are consuming so if they are prohibited to smoke inside the golf clubs and bars, there isn't as big as a demand as if people were permitted to smoke in pubs and clubs. This means that the government manages to lose the money it might have elevated from the tobacco taxation if there is a larger demand. The money that is raised from adding taxation on tobacco is usually invested in professional medical as a public good so it can be perceived as an external advantage. However, federal government this way avoids the harm of issues that are brought on by smoking, such as less successful labor force and the great amount of money that has to be put into medical care because of the health issues induced by smoking. So that it can be argued that the federal government loses money but at the same time invests in the long-run welfare and healthcare of the individuals who are surviving in Scotland. Some benefits might include women smoking less, therefore living much longer or having more healthy babies. These benefits associated with the government legislating on smoking might seem insignificant now because it could be argued that people who smoke, will find a way to smoke anyway, especially with bars and clubs buying comfortable outdoor smoking areas, but the external benefits of the smoking ban are much more important - the reduction of extra smoking health costs (non-smokers now do not have to suffer from other folks smoking indoors), specially when the smoke that accumulates indoors only contributes to destroying health to individuals who are inside enclosed places. Also, not being able to smoke inside discourages more people from smoking or they smoke less frequently because a lot of men and women just can't be bothered to look outside. This is the case especially between teenagers where smoking continues to be considered a social activity so if indeed they can't smoke in pubs and night clubs - they won't. Also people are discouraged from smoking in a manner that doesn't have an effect on the dark-colored market which is good because then the government does not have to spend extra cash on working with the dark-colored market while spending huge amounts of money bettering the fitness of people. Taking all these arguments into account, the idea of externalities can be used to justify federal government legislation on smoking.

An analysis and justification of the short run impact of the smoking ban on market for alcohol sales in pubs and clubs, the marketplace for cigarettes and the marketplace for nicotine gum is also important to consider. Supply and demand is perhaps one of the most fundamental principles of economics and it is the backbone of market economy. Demand identifies how much quantity of a product or service is desired by customers. The quantity demanded is the quantity of a product people are prepared to buy at a certain price. Supply symbolizes how much the market can offer. The quantity supplied refers to the amount of a certain good makers are willing to supply when getting a certain price. The partnership between demand and supply is focused on the allocation of resources. In market market theories, demand and supply theory will allocate resources in the most efficient way possible. The law of demand must be regarded as well since it helps to clarify how the ban of smoking in golf clubs and bars have an effect on the marketplace of alcoholic beverages sales in these places, the market for cigarettes and the market for Nicorette nicotine gum. Firstly, the marketplace for alcohol sales in conditions of source and demand will be analysed to see what impact the smoking ban is wearing the forex market.

The market for alcohol sales in pubs and night clubs increases, because, to begin with, a great deal of non-smokers who did not come to pubs and clubs, or emerged very rarely, just because they didn't like the effects smoking had on them - smelly clothes, air filled with smoke, etc. , will now come to the pubs and bars. Second of all, smoking is a sociable activity in case people will not socialise while smoking, they'll do this while changing the cigarette with an extra drink. Thirdly, cigarettes effect how drunk people are so if they are unable to smoke while consuming then they will drink much more to make up for the fact that they might have been more drunk if they smoked. Therefore, the effect is the fact demand increases (D1 shifts to D2), when supply stays on the same therefore the price increases as well (P1), then when there is certainly more demand than resource, the supply increases too and the purchase price goes down again (P2).

The effect of banning smoking in enclosed open public spaces on the market for smokes also should be analysed. The marketplace for smoking, even though smokes will be the inelastic demand, the demand will slightly reduce as people usually tend to smoke cigarettes more when they drink and lots of people, who don't smoke cigars daily, do smoking when they are drinking alcohol, especially on times out with friends at pubs and clubs. Therefore, as the demand for tobacco lessens (D1 shifts to D2), the supply remains the same but the price goes down (P1). Because there is less demand, the source reduces as well (S1 shifts to S2) and the purchase price goes up (P2).

Thirdly, the result of the smoking ban on the marketplace for Nicorette nicotine gum will be looked at. The marketplace for Nicorette nicotine gum will face a larger demand as people will see it hard never to smoke when developing a particular date, so they'll try to replace smoking with the Nicorette nicotine gum. In the past, increases in the real value of taxation on tobacco has had experienced little influence on demand from smokers because demand has been inelastic. However, there are indications that this all is going to change. Sales of nicotine alternative therapies such as patches, lozenges and gums have boomed by practically 50% over the past five years to around 97 million. Which means that the even more folks are deciding on cigarette replacements, such as the Nicorette nicotine gum, instead of cigarette smoking. Therefore, the demand rises (D1 shifts to D2) and the supply stays the same, as the price goes up as well (P1). As there isn't all the demand, the supply falls (S1 move to S2) and the purchase price goes up (P2)

As it can be seen from these graphs, the smoking ban has different impacts on different marketplaces. From the evaluation, it could be seen that the smoking ban is making an impact on how much people in Scotland are smoking in comparison to how much they were smoking before, and maybe this will eventually lead to a more healthy Scottish society.

Lastly, a conclusion on whether the smoking ban could have any effect on the production probability curve for the Scottish market will get. The production probability curve is a representation of the choice combinations of the levels of two goods or services an market can produce by transferring resources from one good or service to the other. This curve helps in deciding what quantity of a non-essential good or a service an economy can afford to produce without jeopardizing the required production of an important good or service. In the United States of America smoking ban would indeed employ a big effect on the production possibility curve as much neighborhoods there, rural in particular, are determined by tobacco because of the thousands of tobacco farmers, manufacturers, and other businesses that produce, deliver, and sell tobacco products. Many cigarette farmers in the United States lack good alternatives to cigarette, plus they have tobacco-specific equipment, properties, and experience. However, this the ban would not have a significant effect on the production likelihood curve for the Scottish economy, as there aren't so many people in Scotland involved in the cigarette business and the possible expenditures of not introducing the smoking ban would be much increased - the trouble of dealing with diseases triggered by smoking but also other costs such as business days lost and public security payments. As the smoking has been prohibited, the government has less opportunity costs to considere and this can be justified because the smoking ban is essentialy in the passions of the Scottish people.

This article has viewed different aspects of the consequences that the smoking ban in enclosed places in Scotanld has had on the current economic climate and differnet markets. The magnitude to which the theory of externalities can be used to justify authorities legislating on smoking was considered, an examination and reason of the short run impact of the smoking ban on market for liquor sales in pubs and clubs, the marketplace for smokes and the market for chewing gum were provided and, finally, an explanation on whether the smoking ban could have any effect on the production likelihood curve was given. The smoking ban really has already established different sorts of impacts on the Scottish current economic climate, which at the end of the day, can only be good as Scotland is now on the road of raising better generations.

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