On 11 September, 2012, Delhi government enforced a complete ban on the manufacture, sale and storage of "Gutka" in the national capital. How will it affect the market demand and supply of gutka?

On 11 September, 2012, Delhi government enforced a complete ban on the

1.	On 11 September, 2012, Delhi government enforced a complete ban on the manufacture, sale and storage of "Gutka" in the national capital. How will it affect the market demand and supply of gutka?
Answer» Solution :The ban on gutka will have the following EFFECTS: `` The ban will decrease its supply as firms PRODUCING gutka will SHIFT their factors of production in the production of other RELATED goods. `` The ban will also lead to decrease in demand for gutka. In this way, both the demand and supply of gutka will reduce.