Vape or electronic cigarettes (e-cigarettes) are shaped like a conventional cigarette but

contain a nicotine gel, a battery and a heater that vaporises (hence vape) the nicotine when
the vaper sucks on the e-cigarette.1 The article highlighted on drastic drop demanding for
vape due to other factor non-price determinants of demand. Health authorities-organised
campaigns intervention and the fatwa that has been released by The National Fatwa Council
are the factors in decreasing demand vape. Fatwa is an Islamic religious ruling, a scholarly
opinion on a matter of Islamic law.2 In this commentary, we will be looking in depth the
reasons why the demands for vape decrease.
Negeri Sembilan brought down the shutters on e-cigarettes after the National Fatwa
Council deemed vaping "haram", or forbidden in Islam. The effect of this factor will illustrate
in Diagram 1 whereas the demand curve will shift to the left, from D to D. This will create
a surplus where the quantity supplied is more than quantity demanded. To eliminate the
surplus the price of the vape will fall from P to P. The quantity of vape will decreases from
Q to Q and will meet at the new equilibrium at P and Q.

Surplus
PP
P

Q
Q Q Q
1 http://www.tutor2u.net/economics/blog/do-you-mind-if-i-vape-what-aboutelectronic-cigarettes
2 http://islam.about.com/od/law/g/fatwa.htm

Besides that, there is also intervention by health authorities at Seremban as they had
organized campaigns asking people to stop use of electronic cigarettes. That campaign will
influence the consumer to stop use vape and will lead to decrease demand of vape. Due to
both factors, it will affect many vape businesses. As we can see in that article, it mentions that
many businesses are deteriorating and their sales are decrease after the fatwa had been
release. There are also few states that had prohibited selling vape like Negeri Sembilan; this
is including Kelantan, Johor and Kedah.
Furthermore, law that banned vaping in the government workplace is one of others
factor that lead to decrease demand by government servants in the vape market in Malaysia.
Since they will get disciplinary action if they vaping at their workplace, thus lead to decrease
their purchasing vape. Because of that policy, it affected vape business as the customer
demand declined drastically. The effect of this other factors non-price determinants of
demand will illustrate in Diagram 2 whereas the demand curve will shift to the left, from D
to D. Base on economic theory, the decrease in demand of vape will lead to a decrease in the
price of vape, from P to P. The quantity of vape will decreases from Q to Q and will meet
at the new equilibrium at P and Q.

Diagram 2: Decrease in the demand of vape

There are some argue about vaping bring harmful for health as smoking. Department
of Islamic Development Malaysia (Jakim) and the Health Ministry in Selangor had said that
vaping was bad for health. However, there is no evidence that say vaping is bad for health.
We could consider vape as demerit goods. As demerit good is defined as a good which can
have negative impact on the consumer but these damaging effects may be unknown or
ignored by the consumer. Demerit goods also usually have negative externalities where
consumption causes a harmful effect to a third party.3

3 http://www.economicshelp.org/blog/glossary/demerit-goods/