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  • Essay / Discussing the Issue of Smoking in Cars - 621

    This article discusses the accumulated problem of smoking in cars in the presence of children and the government's response to this problem. It dwells on the effects on government policies of this disadvantage in England. The article focuses on the topic of market failure. Market failure in a free market is defined as a condition in which the allocation of goods is carried out inefficiently, resulting in over- or under-allocation of its resources. Market failures occur due to the presence of externalities. An externality occurs when the production or consumption of a good or service affects a third party, negatively or positively. There are two types of externalities: negative and positive externalities. This article addresses the issue of negative externalities of consumption. A negative consumption externality is an externality caused by the consumption of a good or service, negatively affecting a third party. The question addressed in this article points precisely to this problem. It examines the effect of passive smoking in cars on children aged 10 to 16. Since the government of the specified country is aware of the problem posed by this practice, it is considering imposing a possible ban to ensure the reduction of this pressing problem. To put this question in context, below is a graph depicting a negative externality of consumption. The graph above represents a negative externality of consumption, where the marginal social benefit (MSB) is actually less than the marginal private benefit (MPB) (i.e. MPB > MSB). The quantity (Qe) is consumed at the price (Pe), i.e. the equilibrium prices and quantities. In relation to the article, cigarette consumers derive personal benefit (in the form of pleasure) from smoking, but smoke (like passive smoking) has a negative effect on the surrounding public. The following are the possible harmful effects of smoking on society: • Passive smoking • Making the environment unpleasant • Increased mortality rate • Stress on local medical services. These effects are represented by the purple triangle in the diagram. This represents the difference between individual benefit and social benefit, resulting in a loss of welfare or well-being. Cigarettes are in fact demerit goods, goods desirable to their consumers and undesirable to the public, but in any given market they are vastly oversupplied. Since various members of society are affected by this negative externality, the following graph shows the surplus. between equilibrium conditions and optimal conditions.