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| Tobacco Sales Down: Who Is To Blame? | |||||||||||||||||||||||
| Subject | Comparative statics | ||||||||||||||||||||||
| Topic | Supply and Demand, Equilibrium | ||||||||||||||||||||||
| Key Words | Purchases, consumption, suppliers, sales, manufacturers, taxes | ||||||||||||||||||||||
| News Story |
Tobacco farmers in the U.S. are selling less and less tobacco. A report by the Campaign for Tobacco-Free Kids shows that cigarette manufacturers reduced their purchases of U.S.-grown tobacco by 21 percent between 1995 and 1997, far in excess of any reduction in cigarette consumption in the U.S. Instead, the industry is buying more from overseas suppliers. This trend is likely to continue, according to the tobacco industry. They blame some foreign governments for requiring cigarettes to be manufactured in the same country in which they are sold, and the weak economies of Russia and Asia which have curbed cigarette sales. However, in addition, the cigarette manufacturers state that the tobacco growers have also been hurt by the actions of groups such as the American Cancer Society and the American Lung Association which have advocated higher taxes on cigarettes and smoking restrictions. (Updated February 1, 1999) |
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| Source | Wendy Koch, "Report alleges tobacco treachery," USA Today, December 14, 1999. | ||||||||||||||||||||||
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