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describe the effect on the market for cigarettes for each of the following events ( your answer should discuss whether and why there is a shift of the demand curve-leftward or rightward shift, or movement along the demand curve). Each problem is worth 2 points.

a) A cure for lung cancer is found.

b) Wages increase substantially in states that grow tobacco.

c) there is a sharp increase in the price of matches, lighters, and lighter fluid.

d) More states pass laws restricting smoking in restaurants and public places.

e) the federal government imposes a $5 tax on every packet of cigarettes bought.

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M945070

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