EconGoneCountry

Supply and demand with a twang


Title: She Only Smokes When She Drinks

​Artist: Joe Nichols

Economic Concepts: Complementary goods; Supply and Demand

Details: From a purely economic viewpoint, we can examine the situation where the woman chooses to drink and draw some conclusions about what kind of impact it will have on the market for cigarettes.  We know that "she only smokes when she drinks" which means when she purchases alcohol, she will also purchase cigarettes.  In economics, when goods are purchased and consumed together they are called complements in consumption.  If these preferences are true for the entire market, then when people drink, the demand for cigarettes will increase which will lead to an increase in the equilibrium price of cigarettes, ceteris paribus.        

Lyrics
So you lit her cigarette
You're feelin' pretty good
You think you've got a shot
Most girls you probably would
Yeah this is that kind of place
But she ain't that kind of girl
You're readin' it all wrong
Let me tell you about her

She only smokes when she drinks
She only drinks now and then
Now and then when she's tired
Of bein' let down by men
You can give her a light
But it's not what you think
Everybody knows she only drinks alone
And she only smokes when she drinks

Did you ask her to dance
Let me guess, she told you no
Got to take her some place quiet
And see how far that goes
Oh, don't take it all that hard
When she smiles and turns you down
For a complicated girl
She ain't that hard to figure out

She only smokes when she drinks
She only drinks now and then
Now and then when she's tired
Of bein' let down by men
You can give her a light
But it's not what you think
Everybody knows she only drinks alone
And she only smokes when she drinks

​Classroom Polling