The student includes relevant diagrams showing the market equilibrium, welfare loss, price, and quantity consumed before and after the implementation of the regulations on the smoking age. Both diagrams have all the appropriate labels and are accurately labeled, including axis labels, labels for the MSC, MPB, and MSB, welfare loss, and changes in price and quantity. Additionally, the student has included a full explanation of the diagrams, making their content and relevance clear to the reader. Diagram 1 explains the negative externality of consumption, while Diagram 2 explains how increasing the legal smoking age could help reduce the negative externality of consumption by reducing demand.
