Author(s)

Xuanhao Gu, Zixi Zhang, Zihang Yang

Corresponding Author

Xuanhao Gu

ABSTRACT

Tobacco and alcohol are two detrimental goods which may affect people’s health and social harmony when they are overused. Consequently, the Chinese government levies heavier taxes on the two goods to decrease their amount of consumption volumes. In this paper, the authors made a prediction with the Supply and Demand Curve to figure out whether the heavy taxes have worked and use specific data to test their prediction. Through deliberate analysis of the data, the authors concluded that the taxes on tobacco and alcohol indeed decrease the consumption volumes of these goods, improve people’s health conditions and living qualities, and contribute to a harmonious society.

KEYWORDS

Tobacco and alcohol taxes, Supply and Demand, health and living quality