Economics (AS & A Level) · May / June 2022 · Paper 32 · Question 4

In many countries, health authorities are concerned about the harmful effects of smoking cigarettes. Governments have imposed high sales taxes on cigarettes and have conducted anti-smoking campaigns. Why might the quantity of cigarettes demanded remain high?

1. ABetter knowledge of health hazards is changing behaviour.
2. BCigarette smoking will be replaced by cheaper alternatives.
3. CConsumer behaviour is irrational due to addiction.
4. DThe income effect of a price rise makes consumers worse off.

As printed in the paper