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Cigarette Huge Simulation

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The reduce in quantity of cigarette sold due the high price intervened causes shops to sell less as more people will not have the ability to afford cigarette at a higher price, which decreases the income of the shops, such as those corner shop. Although the price has become higher, the tax intervened will not be part of the income of the company, but rather used for either health-care, education or anything that can be used for the society by the government. This can reduce the negative externalities generated by smoking, and the effects of the negative externalities, like the reduction of cases of serious asthma in young people who is near the area of smoking and the damage to the environment.

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