Law of Diminishing Returns

In the article "The Diminishing Returns to Tobacco Legislation" the author, Pierre Lemieux, makes some good points about how the frightful pictures on tobacco cases can scare off potential and current smokers.  His arguements weren't very clear throughout the article, lessening the debate.

I think that if the government kept the photos and warnings to cover only 25% of the case they would reach their "sweet spot".  The government would increase their profits if they kept the pictures to a minimum.  If they did that they would still make a profit, inform smokers of the risks, but they wouldn't scare the consumers away.

I think that the article would decrease the demand.  I only think that because it focuses on the negative effect of the warnings and pictures.

Website of article: http://www.pierrelemieux.org/artdiminish.html

Example of the warnings and pictures: