Q. The Canadian government administers 2 programs that affect the marketplace for cigarettes. Health Canada media campaigns also labeling requirements are aimed at making the public aware of the dangers of cigarette smoking. At the same time, Agriculture also Agri-Food Canada imposes production quotas on tobacco farmers, which raise the price of tobacco above the equilibrium price.

(a) Elucidate how do these 2 programs affect cigarette consumption? Utilize a graph of the cigarette marketplace in your answer.

(b) Illustrate what is the combined effect of these 2 programs on the price of cigarettes?

(c) Cigarettes are also heavily taxed. Illustrate what effect does this tax have on cigarette consumption?