Wednesday, 10 December 2008

Smoking Doctors


Is this lovely lady your doctor?
In China, two in every three doctors smoke; In Russia, two in every five ; In the UK, two in every twenty-five; ann in India, two in every one hundred.


The reasons : variation in price and incomes affecting demand ; asymmetric information (smokers do not know the full health effects in China) ; the variation in indirect taxation; and social norms.


Can you draw tow diagrams which show the difference in prices in the UK and China, using a neagtive externality diagram with the effect of an indirect tax marked on it.

1 comment:

Improvedliving said...

well this is really startling fact. Really cool.


Doctors Excuses