Public policymakers often want to reduce the amount that people smoke. There are two ways that policy can attempt to achieve this goal. One way to reduce smoking is to shift the demand curve for cigarettes and other tobacco products. Public service announcements mandatory health warnings on cigarette packages, and the prohibition of cigarettes advertising on television are all policies aimed at reducing the quantity of cigarettes demanded at any given price. If successful these shift the demand curve for cigarettes to the left as in panel. Alternatively, policymakers can try to raise the price of cigarettes. If the government taxes the manufacture of cigarettes for example cigarettes companies pass much of his tax on to consumers in the from of higher prices. A higher price encourages smokers to reduce the numbers of cigarettes they smoke. In this case the reduced amount of smoking does not represent a shift in the demand curve. Instead it represents a movement alo...