Smokers save Govt cash, says report
This article details how smokers can be beneficial to the government deficit. With high tobacco taxes, cigarette smokers contribute a significant amount of money to the government in taxes. In addition, the shorter life expectancy of a smokers reduce the cost of aged care provided by the government. This relates to our class as this has a direct effect on government spending.
The article also talks about the supply and demand of cigarettes. As the government raises the price of cigarettes by 10 cents (through taxation), consumption falls by 5 percent. This shows the effect that price has on quantity demanded of cigarettes, or, the price elasticity. The article relates to the class in that it talks about the relationship between supply and demand.
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