country
$20 Bonus + 25% OFF
Securing Higher Grades Costing Your Pocket? Book Your Assignment at The Lowest Price Now!

Alcohol And Tobacco Markets In US

tag 0 Download5 Pages / 1,183 Words tag Add in library Click this icon and make it bookmark in your library to refer it later. GOT IT

Question:

Discuss about the Alcohol and Tobacco Markets In US.
 
 

Answer:

Introduction

In United States, there is a growing concern for rising consumption of cigarette and alcoholic beverages. In order to put a restriction on cigarette consumption tax rates on cigarette has increased. The tax policy is successful in reducing cigarette demand. it is found that when cigarette demand reduces then beer and spirit demand also reduces indicating ac complementary relation. With an objective of reducing crime rate Isle of Man currently employs the strategy of banning cigarette for prisoners.   

Beer, Wine and Cigarette Markets

In United States beer market dominates other two most common beverages Wine and Sprit market. Hence, Beer occupies an important place in the category of Alcoholic beverages. American spends nearly $37 billion as recorded from bear retail selling in 2017 (nielsen.com, 2017). There is intensive competition among different brands. Some of the dominating brands in beer industry are Anheuser-Busch In Bev, Miller Coors, Heineken USA, Pabst and Boston Beer Co.

USA has the largest Wine market in World. Apart from domestic production United States import a large volume of Wine every year. Australia is one of the large exporters of Wine in USA. The sales in wine industry have an upward trend. In the wine market there are 90991 wineries as recorded in 2017 (wineinstitute.org, 2017). The preference and spending on Wine is increasing day by day encouraging Wine production and Sales.

US posses a large cigarette market as like alcoholic beverages. In the phase of anti smoking policies the producers in the market focus on developing newer product. In this regard the E-cigarette market is has become important. Regular cigarette, menthol cigarette, cigars are some of the varieties available in the market.

There is an interconnection between the alcohol and tobacco market. Most drinkers prefer to smoke at times of drinking. People consume alcohol in combination with cigarette. When a tax on cigarette increases price of cigarette then there is an obvious decrease in cigarette demand. Associated with this, US economy has a recorded a decline in alcohol consumption (washingtonpost.com, 2017). This shows a complementary relation between cigarette and alcohol demand. However, the decline is not uniform among for all alcoholic products. Beer is more closely related with cigarette than Wine and hence experiences a larger fall in its market demand due to taxation on cigarette. Any change in beer or cigarette market is likely to affect the other one.

 

Impact of health earning on packaging of cigarette     

Cigarette and bear are complementary goods. When demand for either of the product changed this has an impact on the other (Tauchmann et al., 2013). When cigarette tax reduces demand for cigarette then there is a decline in demand for beer as well. On account of health warning on cigarette packaging the demand for cigarette might reduces because of increasing awareness among people. When cigarette demand declines then beer demand will also decline. This is shown in figure 2. The demand curve will shift to the left and correspondingly price quantity of beer sold will also decline.

Impact of yeast shortage

Yeast is used as an in ingredient in preparing beer. Shortage in yeast supply lead supply obviously reduces production of beer. Supply of beer then fall short of its demand and causes a price hike in beer market (McKetin et al., 2014). In response to rising price demand for beer will fall. Those who purchase cigarette for consuming cigarette at time of drinking beer will reduce their purchase to some extent. Again demand curve for cigarette will move inward direction from DD to D1D1. With a reduced in cigarette market price will decline from P* to P1 and quantity purchased will fall from Q* to Q1.

The figure above shows how to complementary relation between cigarette and beer brings changes when market scenario changes in any of the two markets.

Cigarette ban and declining crime rate

Smoking is an addictive habit found in people of different age groups. To support their habits people often involve in different criminal activities. Crimes are more common among teenagers who do not have a steady source of income. Therefore, imposing ban on cigarette is expected to reduce crime rate such as stealing, smuggling and other types of crimes (Kulick, Prieger & Kleiman, 2016). The strategy taken in Isle of Man is quite different than traditional banning. There, the prisoners once entered the prison have to give up smoking at anyhow. They have no other options but to leave their habit.

The threat of giving up smoking works more intensively than punishment of mere imprisonment. This contributes to a significant decline in the crime rate. The accounted crime rate falls to nearly 14% after imposition of banning (dailymail.co.uk, 2017). High community Spirit and low rate of unemployment has already kept crime rate low in Isle of Man. Additionally, banning cigarette in prisons has made crime rate even lower.

In the prison building, neither the inmates nor the guards are allowed to smoke. In order to provide assistance in completely giving up the habit nicotine patches are given. Any addiction has a direct impact on mental health (Sweeting & Hunt, 2015). Therefore, arrangement for counselling is given to the prisoners. Criminals for all types of conviction are brought under this policy. Therefore, people are doing away with even small crimes like fighting, stealing cars. The idea of cigarette ban thus helps to reduce crime rate largely.

Conclusion

The paper evaluates alcohol and tobacco market in United States. Market for beer, Wine and cigarette are closely evaluated and inter relationship between cigarette and alcohol product has been found to exits. The relation is more relevant for beer that that for Wine. Health warnings on cigarette affect beer market demand. Similarly yeast shortage in beer market affects cigarette purchase. Final focus of the paper is on the banning of cigarette in Isle of Man and an associated declining crime rate.

 

References

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

Kulick, J., Prieger, J., & Kleiman, M. A. (2016). Unintended consequences of cigarette prohibition, regulation, and taxation. International Journal of Law, Crime and Justice, 46, 69-85.

Market, T. (2017). The State of the U.S. Beer Market. Nielsen.com. Retrieved 14 September 2017, from https://www.nielsen.com/us/en/insights/reports/2017/the-state-of-the-us-beer-market.html

McKetin, R., Chalmers, J., Sunderland, M., & Bright, D. A. (2014). Recreational drug use and binge drinking: Stimulant but not cannabis intoxication is associated with excessive alcohol consumption. Drug and alcohol review, 33(4), 436-445.

Statistics - The Wine Institute. (2017). Wineinstitute.org. Retrieved 14 September 2017, from https://www.wineinstitute.org/resources/statistics

Sweeting, H., & Hunt, K. (2015). Prison Service’s Tobacco Strategy Group.

Tauchmann, H., Lenz, S., Requate, T., & Schmidt, C. M. (2013). Tobacco and alcohol: complements or substitutes?. Empirical Economics, 1-28.

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.

OR

Cite This Work

To export a reference to this article please select a referencing stye below:

My Assignment Help. (2019). Alcohol And Tobacco Markets In US. Retrieved from https://myassignmenthelp.com/free-samples/alcohol-and-tobacco-markets-in-us.

"Alcohol And Tobacco Markets In US." My Assignment Help, 2019, https://myassignmenthelp.com/free-samples/alcohol-and-tobacco-markets-in-us.

My Assignment Help (2019) Alcohol And Tobacco Markets In US [Online]. Available from: https://myassignmenthelp.com/free-samples/alcohol-and-tobacco-markets-in-us
[Accessed 31 May 2020].

My Assignment Help. 'Alcohol And Tobacco Markets In US' (My Assignment Help, 2019) <https://myassignmenthelp.com/free-samples/alcohol-and-tobacco-markets-in-us> accessed 31 May 2020.

My Assignment Help. Alcohol And Tobacco Markets In US [Internet]. My Assignment Help. 2019 [cited 31 May 2020]. Available from: https://myassignmenthelp.com/free-samples/alcohol-and-tobacco-markets-in-us.


MyAssignmenthelp.com has appointed best assignment experts who are wizards of words. Our writers know every trick of crafting high quality write-ups within a short period. With years of experiences, we have become one of the most prolific assignment help services in the USA. We deliver custom-made help to students with writing different types of assignments. We guarantee total need-based and timely service, and this is why increasing numbers of students prefer to buy assignment online.

Latest Economics Samples

ENGL1301 Rhetoric And Composition I

Download : 0 | Pages : 6

Answer: The Power of the Media Over the past few years, there has been an undergoing significant changes in the way people read and process information. With the passing years the world is heading towards the creative change. The world is getting faster and it has observed a significant change in the field of communication. The world has adopted the means of media to head towards the effective communication and towards making the world a smarte...

Read More arrow

ECO 110 Economics For Medium Of Exchange And Unit Of Account

Download : 0 | Pages : 2
  • Course Code: ECO 110
  • University: Saint Leo University
  • Country: United States

Answer: There are three primary functions of money, which can also be served by cigarettes: a) Medium of exchange-Money can be used as common exchange medium to buy any good or service. Cigarettes can also be used for this purpose, being one of the most commonly used commodities worldwide. b) Unit of account-Goods and services are valued with respect of money as numeraire. In this aspect, cigarettes can also be used as goods and services can...

Read More arrow

ECO511 Economics For Business Report

Download : 0 | Pages : 6
  • Course Code: ECO511
  • University: Charles Sturt University
  • Country: Australia

Answer: Introduction  In the economic conceptual framework, the term “market” refers to the place of interaction of the buyers and the sellers of goods and services in an economy, the former representing the demand side and the latter representing the supply side. The situation reached by their mutual agreement is known as the “equilibrium” situation, from which none of the sellers or the buyers have any incentive...

Read More arrow

MOD003327 Economics For Business

Download : 0 | Pages : 13
  • Course Code: MOD003327
  • University: Anglia Ruskin University
  • Country: United Kingdom

Answer: Introduction: Water is acknowledged as life and without water life wouldn’t have sustained in the planet earth. Without having water for drinking not a single living organism would have sustained in the earth and all of the living being are dependable on the water source of the planet earth for living (Shiva 2016). Well, it is good to know that there is more than enough water to drink in the earth, however, over exploitation of ...

Read More arrow

SOC135 Global Economic Issues

Download : 0 | Pages : 3
  • Course Code: SOC135
  • University: Seneca College
  • Country: Canada

Answer: Introduction: Francisco H.G Ferreira and Martine Ravallion, member of the Development Research Group World Bank, focused on two major problems of the world. These are global poverty and income inequality. To establish a correlation between poverty and indices of inequality of both developed and developing countries, authors collected data from household surveys from 130 countries. In the first part of their paper, authors discussed ab...

Read More arrow
Next
watch

Save Time & improve Grade

Just share Requriment and get customize Solution.

question
We will use e-mail only for:

arrow Communication regarding your orders

arrow To send you invoices, and other billing info

arrow To provide you with information of offers and other benefits

1,324,980

Orders

4.9/5

Overall Rating

5,075

Experts

Our Amazing Features

delivery

On Time Delivery

Our writers make sure that all orders are submitted, prior to the deadline.

work

Plagiarism Free Work

Using reliable plagiarism detection software, Turnitin.com.We only provide customized 100 percent original papers.

time

24 X 7 Live Help

Feel free to contact our assignment writing services any time via phone, email or live chat.

subject

Services For All Subjects

Our writers can provide you professional writing assistance on any subject at any level.

price

Best Price Guarantee

Our best price guarantee ensures that the features we offer cannot be matched by any of the competitors.

Our Experts

Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1692 Order Completed

98% Response Time

Alfred Dodd

PhD in Computer and Information Science with specialization in Database

Wellington, New Zealand

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

647 Order Completed

98% Response Time

Adlina Han

Masters in Marketing with Specialization in Branding

Singapore, Singapore

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

2279 Order Completed

97% Response Time

Zachary Perez

PhD in Computer Science and Information System

Washington, United States

Hire Me
Assignment writing guide
student rating student rating student rating student rating student rating 5/5

1592 Order Completed

96% Response Time

Jane Sima

Ph.D in Psychology with Specialization in Industrial-Organizational Psychology

Singapore, Singapore

Hire Me

FREE Tools

plagiarism

Plagiarism Checker

Get all your documents checked for plagiarism or duplicacy with us.

essay

Essay Typer

Get different kinds of essays typed in minutes with clicks.

edit

GPA Calculator

Calculate your semester grades and cumulative GPa with our GPA Calculator.

referencing

Chemical Equation Balancer

Balance any chemical equation in minutes just by entering the formula.

calculator

Word Counter & Page Calculator

Calculate the number of words and number of pages of all your academic documents.

Refer Just 5 Friends to Earn More than $2000

Check your estimated earning as per your ability

1

1

1

Your Approx Earning

Live Review

Our Mission Client Satisfaction

I would recommend it to my friends, easy to contact. always on time and offering good prices

flag

User Id: 412828 - 31 May 2020

Australia

student rating student rating student rating student rating student rating

The work was phenomenally done, and it was even praised. I highly recommend this site, the service and help, altogether, I would not have passed any classes if it weren\'t for you guys and gals

flag

User Id: 260056 - 31 May 2020

Australia

student rating student rating student rating student rating student rating

The assignment was very well written, and the teacher was very pleased and praised the work.

flag

User Id: 260056 - 31 May 2020

Australia

student rating student rating student rating student rating student rating

For once, what I asked for was delivered without any hassle and going back and forth. Whichever writer did the assignment, thank you so much for revamping my assignment based on the feedback that was provided.

flag

User Id: 423899 - 31 May 2020

Australia

student rating student rating student rating student rating student rating
callback request mobile
Have any Query?