This article focuses on the ban on tobacco display. It deals with the aspects of negative externalities of consumption caused by the consumption of tobacco and cigarettes and the effect of the ban on tobacco display on small businesses. A negative externality is a cost that is suffered by the entire society as a result of an economic transaction. In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organisation, property owner, or resource that is indirectly affected.
Although the externality that is generally generated in the environment and the society can be positive, the externalities of consumption generated by smoking and the intake of tobacco are all negative, and this is one of the biggest examples of a negative externality of consumption. When consuming a product, if negative externalities are produced, it will mean that the marginal social benefits are less than the marginal private benefits. The consumers will not think about the negative effects that the consumption will have on third parties, they will only think about the benefits/costs to them as an individual.
The consumption of products like alcohol, cigarettes, tobacco, drugs etc come under the negative externality of consumption as it does not only harm the individual who consumes these products but it also affects the society as a whole, because the destruction done by the individual who consumes such products will directly affect the