Tobacco Company Marketing Strategies
Author(s): F. J. Chaloupka, K. M. Cummings, C. P. Morley and J. K. Horan
Source: Tobacco Control, Vol. 11, Supplement 1: Discoveries and Disclosures in the Corporate
Documents (Mar., 2002), pp. i62-i72
Published by: BMJ Publishing Group
Stable URL: http://www.jstor.org/stable/20208006 .
Accessed: 18/08/2013 02:32
Author(s): F. J. Chaloupka, K. M. Cummings, C. P. Morley and J. K. Horan
Source: Tobacco Control, Vol. 11, Supplement 1: Discoveries and Disclosures in the Corporate
Documents (Mar., 2002), pp. i62-i72
Published by: BMJ Publishing Group
Stable URL: http://www.jstor.org/stable/20208006 .
Accessed: 18/08/2013 02:32
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Question 1
? Which measure is particularly relevant in assessing the impact of raising cigarette
taxes on the consumption of cigarettes? (1 point)
? Provide some estimates of this measure while clearly citing the source. (1 point)
? Briefly mention two factors that can affect its size. (2 points)
? Assuming an adult smoker allocates income between smoking cigarettes and other
goods, what would be your guess about the slope of the price-consumption curve for
cigarettes?
Question 2
? Assume that all smokers allocate income between smoking cigarettes and “other”
goods and consider both of them as normal goods. Using a diagrammatical analysis,
explain why a young smoker’s adjustment to a price increase in cigarettes differs from
that of an adult smoker.
Diagram: 10 points; Explanation (including explaining the diagram): 20 points
JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of
content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms
of scholarship. For more information about JSTOR, please contact support@jstor.org.
Question 1
? Which measure is particularly relevant in assessing the impact of raising cigarette
taxes on the consumption of cigarettes? (1 point)
? Provide some estimates of this measure while clearly citing the source. (1 point)
? Briefly mention two factors that can affect its size. (2 points)
? Assuming an adult smoker allocates income between smoking cigarettes and other
goods, what would be your guess about the slope of the price-consumption curve for
cigarettes?
Question 2
? Assume that all smokers allocate income between smoking cigarettes and “other”
goods and consider both of them as normal goods. Using a diagrammatical analysis,
explain why a young smoker’s adjustment to a price increase in cigarettes differs from
that of an adult smoker.
Diagram: 10 points; Explanation (including explaining the diagram): 20 points
[Hint: This question involves identifying and applying relevant concepts from Topic 1 to the
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