Cigaratte smoking is injurious to health. How can the government reduce its consumption but only through the normal market forces. Explain the chain of effects of government's action.

Cigaratte smoking is injurious to health. How can the government reduc

1.	Cigaratte smoking is injurious to health. How can the government reduce its consumption but only through the normal market forces. Explain the chain of effects of government's action.
Answer» Solution :Given thatcigarettemarket is in equilibrium, government can impose heavy taxes on production of cigarettes. This will 'decrease' supply. As a result excess demand will be created. This will lead to competition between BUYERS and lead to rise in PRICE of cigarettes. This will go on tilll thecigarettes market reaches at new equilibrium at a higher price of cigarettes falls. (Or any other relevant answer but BASED on market forces.)