Unit 5A: Exercise 5-3 Law of Diminishing Returns

The Diminishing Returns to Tobacco Legislation

Points in the debate that have merit

- Decreased amounts of  smokers

- Government Intervention becoming less effective overtime

- Smuggling will always increase due to the government intervention

Points that lessen the debate

- Health bureaucrats becoming corrupted with power

The point of diminishing returns for the government 

- After many long years of government intervention, all the rules and regulations have reached to a point where all diminishing. The effectiveness of the reduction in smoking have lessen after constant improvements.

Solutions that would increase the government’s production

 

- Slowly apply restrictions. By doing this, you will be able to fully utilize the effectiveness of regulations and rules.

 

- Increase taxes for Tobacco companies

Implications of supply and demand of tobacco in the article

 

- Tobacco being an inelastic product, people will always buy the product due to their addictions

 

Sin taxes and the debate 

 

- Sin taxes are usually applied to products that have public disapproval. In this case, tobacco may be taxed due to Health organizations and their dislike to the product which gives the public their opinion.

 

Source : http://www.pierrelemieux.org/artdiminish.html  

Unit 4: Exercise 4-3 •Oil and gas industry in Alberta

 Oil and gas industry in Alberta

Oil and gas industry has always been booming in the province of Alberta. In a current news article, Alberta past and current problems have always been the environment. Alberta til this day has always neglected on protecting its lands from industrial activities. This condition of the environment has always been the same ever since they started the oilsands. Therefore, there has been no improvements whatsoever to help improve the environmental safety of both the lands and the animals.

Source : http://www.scoop.it/t/albertanews

In the article, it explains how only 12.5% of Alberta's land is protected from industrial activities. Such a low percentage could not and will not stop greenpeace and other environmental activists to stop protesting. Just recently, a group of greenpeace activists had accomplish a stunt by putting a banner on top of the Calgary tower to protest about the oil problem in Alberta.

Source : http://www.scoop.it/t/albertanews

The degree of elasticity demand for products and services in the industry have been quite on a high lately as consumers are struggling to convert to much safer and environmentally friendly products and services.

Source: http://www.albertaoilmagazine.com/2011/08/alberta-gives-land-protection-the-cold-shoulder/

Exercise 4 - 2 Elasticity and Revenue

In the Globe and Mail, the talk about the loonie soaring and later dropping due to the US and Europe markets. Currently the loonie is dropping and is therefore is elastic

 

http://www.theglobeandmail.com/report-on-business/economy/currencies/in-this-market-the-loonie-doesnt-cut-it-as-a-safe-haven/article2123242/

Exercis 3-3

Effects of changes in Demand

What causes Demand to change?

-Price, economy, inflation, quality

Give a personal example?

-A real life example would be Pringle's chips. Presently the price for a single can of Pringles is $1.50. If there was a rise in price of this single can of chips, the demand for a can of Pringles would decrease