Tobacco Consumption Patterns
Article Analysis: Tobacco Consumption Patterns
Introduction Tobacco consumption patterns have been fluctuating continuingly ever since the first determined need was made. Tobacco is widely used for a number of different products. Most commonly known use of tobacco is in the manufacturing of cigarettes. To understand the consumption pattern of tobacco, a person must know a few key ideas in business. A person must know what economics, microeconomics, law of supply and demand, and factors that influence the law of supply and demand. After this analysis the information will demonstrate the consumption patterns of tobacco in a clear format.
Economics
“Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. One of the key words in the definition of the term “economics” is coordination.” (McGraw-Hill Companies, 2008, p. 1). Human beings still have a desire for tobacco. Thus, the desire will create an economic dimension to the product. “While in developed countries tobacco smoking is set to continue to decline, in developing countries consumption will increase, the report said (Projections of tobacco production, consumption and trade to the year 2010).” (Northoff, 2008) Thus the need for tobacco is still constant and the economics to this product are still in place.
Microeconomics
“Microeconomics is the study of individual choice, and how that choice is influenced by economic forces. Microeconomics studies such things as the pricing policies of firms, households’ decisions on what to buy, and how markets allocate resources among alternative ends.” (McGraw-Hill Companies, 2008, p. 14). The price of cigarettes is a lot more than 10 or twenty years ago, but so are a lot of items due to inflation. But the demand for cigarettes has changed dramatically. At one time cigarettes were so popular that they were advertised on television, smoked in hospitals,
Introduction Tobacco consumption patterns have been fluctuating continuingly ever since the first determined need was made. Tobacco is widely used for a number of different products. Most commonly known use of tobacco is in the manufacturing of cigarettes. To understand the consumption pattern of tobacco, a person must know a few key ideas in business. A person must know what economics, microeconomics, law of supply and demand, and factors that influence the law of supply and demand. After this analysis the information will demonstrate the consumption patterns of tobacco in a clear format.
Economics
“Economics is the study of how human beings coordinate their wants and desires, given the decision-making mechanisms, social customs, and political realities of the society. One of the key words in the definition of the term “economics” is coordination.” (McGraw-Hill Companies, 2008, p. 1). Human beings still have a desire for tobacco. Thus, the desire will create an economic dimension to the product. “While in developed countries tobacco smoking is set to continue to decline, in developing countries consumption will increase, the report said (Projections of tobacco production, consumption and trade to the year 2010).” (Northoff, 2008) Thus the need for tobacco is still constant and the economics to this product are still in place.
Microeconomics
“Microeconomics is the study of individual choice, and how that choice is influenced by economic forces. Microeconomics studies such things as the pricing policies of firms, households’ decisions on what to buy, and how markets allocate resources among alternative ends.” (McGraw-Hill Companies, 2008, p. 14). The price of cigarettes is a lot more than 10 or twenty years ago, but so are a lot of items due to inflation. But the demand for cigarettes has changed dramatically. At one time cigarettes were so popular that they were advertised on television, smoked in hospitals,
References: McGraw-Hill Companies. (2008). Economics- 7e. Retrieved October 30, 2008, from University of Phoenix, Week One, ECO365. Northoff, Erwin. (2004). FAOnewsroom. Higher world tobacco use expected by 2010 - growth rate slowing down. Retrieved October 30, 2008, from http://www.fao.org/english/newsroom/news/2003/26919-en.html