Using models and theories of either (1) the market or (2) market failure (i.e. only material from lectures 2 to 6), perform a microeconomic analysis of one specific appropriate issue or phenomenon of...

Tobacco market in Singapore
Introduction:
Near 7 million people die yearly of tobacco, around 2 million adults are from Asia, around the anticipated population of Singapore in 2030. Nations spend more than $1 billion in healthcare and productivity losses, 60% of which are in high-income countries with the greatest levels of smoking-related illnesses and fatalities. Tobacco consumption is recognised to be a major risk factor for the global growth of incidence of non transfusible diseases, with 70 percent of the world fatalities from non-communicable or chronic diseases in both the advanced and developing nations considerably contributing to tobacco-related diseases.
Since the 1970s and under the National Smoking Control Program launched in 1986, Singapore has implemented a tobacco control policy aimed at making Singapore a non-smoking nation, over 35 years before becoming the World Health Organization's First Evidence-based Global Health Treaty in the February 2005 Framework Convention on Smoking Control (FCTC), Singapore is a tobacco control nation. Before the Treaty came into force Singapore was among the first 40 nations to ratify the FCTC (World Health Organization 2005). With a lowest frequency of adult smoking of 13% (as of 2013), It is undoubtedly Singapore that is the leader in Southeast Asian tobacco controls and has much to offer elsewhere. Singapore is still seeking to reduce the smoking prevalence to 12 per cent by 2020, even with one of the lowest smoking prevalence in the world. The strategy is multi-stage. This is composed by preventing youth initiation, education and specific target group programmes and providing increased support and access to smoking cessation programmes.
Demand for cigarette market and its price elasticity of demand:
The changing prices of inelastic demand only lead to a modest change in the amount sought. In other words, the amount requested does not respond particularly well to price fluctuations.
Since smoking is so difficult to smoke it is very inelastic to demand cigarettes meaning that significant price adjustments are only leading to a modest amount of changes in demand. Similarly, only substantial price increases (decreases), since demand is inelastic to changes in price, will decrease (stretch) demand. Social variables and training are frequently important elements in the smoking process, although the quantity of cigarettes that are smoked is not highly priced.
If a tax is levied or increased, the weight of the tax is on those customers or producers who cannot migrate to a replacement product in order to avoid tax. This indicates that no replacement product is more enticing to customers in comparison with the newly charged product that can instead be consumed. For manufacturers it means that the resources utilized to make the product cannot be used to manufacture something else simply.
Remember that the availability of alternatives influences the steepness of consumer demand curves or producer supply curves (steep curves are inelastic). The demand for cigarettes is inelastic, since cigarettes are nothing else. It is not inelastic to have landing places available at airports because when the prices of landing spots decrease, Logan airport with its runways and terminal buildings cannot quickly begin to produce anything new.
Supply for cigarette market and its price elasticity:
Government initiatives to restrict smoking are adopted at all...