Topic-Supply

How can the availabiblity of tobacco products be reduced through the market? Explain. Use Diagram.

The availability of tobacco products can be reduced either through a drastic increase in its prices by increasing tax rates of such products. The Govt. can either increase the tax on production or the tax on distribution.Inputs used in the production of tobacco produsts must be made short of supply that hinders production and results in less production.As a result its demand will fall. This will lead to a situation of excess supply.