There was a time when electronic cigarettes (vapes) were marketed as completely harmless lifestyle products. Eye-catching point-of-sale displays, sweet-themed flavours, and social media influencer promotions rapidly increased their popularity, particularly among teenagers. Today, health authorities express growing concern over nicotine addiction and unknown long-term respiratory effects among young people, with over 20% of adolescents in some high-income nations reported to have used these products. (5)
Tight restrictions on the display and marketing of vaping products at retail points and on digital platforms can significantly curb consumption. Several nations have proposed or implemented comprehensive bans on in-store displays and digital influencer sponsorships to restrict exposure. (10)
Furthermore, some governments have introduced specific excise duties on vape liquids to discourage youth uptake. A tax that raises the average retail price of refill liquids by 15% is estimated to decrease consumption by around 12% among young users. (15)
Nonetheless, the industry continues to innovate, introducing sleek, highly disposable designs that bypass traditional definition-based regulations. Vape manufacturers maintain substantial marketing budgets, redirecting promotional spending toward word-of-mouth campaigns and underground sponsorships, posing a continuous challenge to public health legislation. (20-25)
Question
Explain why 'restrictions on the display and marketing of vaping products' (Extract A, lines 8–9) may result in a decrease in the total revenue of vape manufacturers. Include a supply and demand diagram in your answer.
