Consumption Between Underage Youth Adults â€Myassignmenthelp.Com

Question: Discuss About The Consumption Between Underage Youth Adults? Answer: Introduction In todays world, consumption of tobacco and Alcoholic product is growing globally. These products badly affect the health of civilian. In concern to this, government considers increase in the tax rates on cigarette and alcohol. Present paper describes the incidence of different types of alcohol products and Cigarette consumption in United States. Alcoholic items and cigarette are often considered as complementary product. In United State, beer is found to be more closely related with cigarette. United State takes attempts to reduce smoking by increasing tax rate on cigarette. Apart from than cigarette is ban in the prison of Isle of Man to reduce crime rate in the state. Alcohol and Tobacco market In the Alcohol market in United State, three widely consumed drinks are Beer, Wine and Spirit. Demand for beer is ahead of Wine and Spirit market. People in America spend a considerable amount in beer retail stores. In the composition of beer, the level of alcohol is least. This is one of the reasons for having a large share in beverage market. There are microbreweries and macro breweries in the market (Siegel et al., 2015). In the beer market, there is competition among different beer brands. Wine market in United State is globally one of the largest markets. Demand for Wine is growing day by day. In addition to domestic production, a significant volume is imported to fulfill domestic demand. Previously Wine is mostly used in occasions. Now, people increase their demand for Wine. Some dominating brands in Wine market are Treasury Wine Estates, Constellation Brands, Bronco Wine Company and Gallo Wine Company (statista.com, 2017). Tobacco Market The cigarette market is quite large in USA as like the alcohol market. There are different types of cigarette available in the market. Some of these are Regular Cigarette, Cigar; a new variety is e-cigarette. US government increases tax on cigarette items (Anderson Nelgen, 2015). Therefore, to maintain sales volume, seller brings changes in selling strategies and introduces newer products. Alcohol and tobacco items both are addictive in nature. More often people consume both cigarette and alcohol at the same time. This intensifies addiction. A complementary relation exists between alcohol and cigarette. This is supported by the report published in the article. In an attempt to reduce smoking, when US government increases tax rate then obvious impact is a decrease in cigarette demand. This however also brings a reduction is beer demand (washingtonpost.com, 2017). The inverse relation between price of cigarette and beer demand indicates that the products are complementary. Impact of health warnings on cigarette packaging on beer demand Figure 1: health warning on cigarette packaging and beer market (Source: as created by the Author) Cigarette is harmful for health. Suppose the government orders to give health warning on each cigarette packet. This might impacts on cigarette purchase by reducing the demand for cigarette. Same as when tax on cigarette reduces cigarette demand as well as beer demand health warning will impact on beer demand in the same way (Subbaraman, 2016). Figure 1 above depicts the picture of beer market. The initial demand curve is DD which now shift leftward and becomes dd. The likely impact of this a decline in both price and demand in the beer market. Effect of Yeast shortage on Cigarette purchase Figure 2: effect of yeast shortage and cigarette purchase (Source: As created by Author) A supply shortage in yeast creates a supply shortage in the beer market as yeast is used in making beer. From the normal supply demand framework in the market, supply shortage lead to a price increases in beer market resulting in a decrease in demand (Fine, 2016). When beer demand reduces then purchase of cigarette will also reduce as many people smokes at times of drinking beer. Same as above the cigarette demand curve will shift inward from its original position and consequently price and quantity in the market reduced. Cigarette ban and crime rate The addiction of smoking is more common than drinking. Consuming tobacco is less costly than drinking wine or beer. The demand for any addictive has less inelasticity. People generally do not want to leave this habit. Once get addicted people even involve in crime activities to support their addiction. One way to reduce smoking and resulted crime is to increase price of cigarette by taxation. However, taxation is not very effective way to reduce crime rate. (Walters, 2013). Isle of Man designs a different strategy to reduce crime rate in the region. The strategy is to ban smoking in the prison. Once people do any crime and sent to the prison they are compelled to leave smoking. Smoking is completely ban in this prison. It is seen that the policy effectively reduces crime rate by almost 14% (dailymail.co.uk, 2017). The fear that once criminals get imprisoned they are not allowed to smoke anymore stops them to do any crime for a mere reason. Smoking is strictly prohibited in the prison building. All those who stay in the building such as inmates, guards have to give up smoking along with other convicts. The crime rate is already low in this area because of a considerably low unemployment rate. The smoking ban in prison further reduces the crime rate. Leaving any kind of addiction is not an easy task. Realizing the difficulty supplements to cigarette is provided. Proper counseling is undertaken for the convicts to help them to completely get rid of smoking. Conclusion The report presents insight of alcohol and tobacco market in United State. Increased tax on cigarette reduces cigarette purchase and reduces demand for beer. This suggests complementarily between cigarette and beer. Because of the complementary relation a health warning on cigarette package can have a impact on beer market. Similarly yeast shortage in beer market reduces cigarette purchase. Smoking ban in Isle of Man successfully reduces crime crate in this area. References Anderson, K., Nelgen, S. (2015).Global wine markets, 1961 to 2009: a statistical compendium(p. 468). University of Adelaide Press. Drop in crime on Isle of Man attributed to Europe's only non-smoking prison. (2017).Mail Online. Retrieved 14 September 2017, from https://www.dailymail.co.uk/news/article-1239209/Drop-crime-Isle-Man-attributed-Europes-non-smoking-prison.html Facts, U. (2017).Topic: Wine Market.www.statista.com. Retrieved 14 September 2017, from https://www.statista.com/topics/1541/wine-market Fine, B. (2016). Microeconomics.University of Chicago Press Economics Books. Siegel, M., Chen, K., DeJong, W., Naimi, T. S., Ostroff, J., Ross, C. S., Jernigan, D. H. (2015). Differences in alcohol brand consumption between underage youth and adultsUnited States, 2012.Substance abuse,36(1), 106-112. Subbaraman, M. S. (2016). Substitution and Complementarity of Alcohol and Cannabis: A Review of the Literature.Substance use misuse,51(11), 1399-1414. Walters, G. D. (2013).Drugs, Crime, and Their Relationships. Jones Bartlett Publishers. Want people to drink less? Make their cigarettes more expensive. (2017).Washington Post. Retrieved 14 September 2017, from https://www.washingtonpost.com/news/wonk/wp/2014/10/27/want-people-to-drink-less-make-their-cigarettes-more-expensive/?utm_term=.6a90eaa33261