Case 1 Using Supply and Demand Concepts to Control Smoking Among Teenagers

The Department of Health Secretary is worried about the current findings on smoking among Filipino teen-agers (high school and college students). It is shown that the prevalence of smoking among this age group is about 14.2% and increasingly steadily. The Department of Health Advisory Committee on Anti-Smoking is then created and tasked to find alternative ways of this pressing problem. This does not only give them the problem of seeing bad habits among the youth but the development of more problems in the future. With increase in smokers, we can expect higher incidence and prevalence of COPDs, lung cancer in the future. The economic effects of such will be tremendous. Therefore the objective of the committee is to find ways of decreasing smokers among the youth. The committee is able to narrow down their options into three most plausible alternatives.

Option 1:
Launch a tri media (TV, radio, print) campaign to highlight the ill consequences of smoking. The advisory committee can ask the Department of Health to secure fun to do this undertaking. It was estimated that they will spend about Php 95 Million to hire media personalities to participate, take part in TV program, air on radio stations, and do print materials that will all send a very clear message: Smoking is dangerous and it kills.

Option 2:
Impose an additional 30% tax on cigarettes. The Department of Health can find a legislator to introduce a bill in congress imposing a 30% additional tax on cigarettes. They have found a likely candidate but know that it would take a majority vote for it to be passed in the Congress and then will also be scrutinized in the Senate. This will entail a lot of expenses for the DOH.

Option 3:
Impose a national ID system that will identify those who are less than 18 years. Stores will not allow them to buy cigarettes. This option will entail requiring all persons

buying cigarettes to show a government issued ID indicating that the person is 18 years old and above, before he or she is sold a cigarette.

I.

Characteristics and behaviour of the target group (teen-agers) that may affect the feasibility of using the different options.
easily being influenced by peer Stubborn, Self-centered and Pride Desire(Addiction) -a strong feeling of wanting to have something or wishing for something to happen leads to Resourcefulness Anxiety

II.

Quantitative Assessment

Option 1:

Factor that has an effect on the Demand/Supply Curve: Tri media The curve that is affected: DEMAND CURVE Affects the taste of the buyer Greater speculation

How the curve will react: shift to the left

Option 2:

Option 3:

III. Qualitative assessment: Advantages and Disadvantages of each option. A. Tri-media Campaign Advantage
Since its celebrities, it would attract a larger audience. The audience will be more aware of the different effects of using a cigarette.

Disadvantage
It will not affect everyone. The effect of the campaign isn't very predictable.

B. Impose a 30% tax

 Less health issues Less demand

More debate and process.

C. Impose a National ID system

The number of minors buying cigarettes under the age of 18 decreases. There could be a possibility that people would sell cigarettes "underground", where teenagers could buy. The minors might produce a fake ID in order to acquire cigarettes.