Question: If the government decides to tax the consumption of cigarettes, (suppose there was not one on the market before) what will happen in the market for cigarettes? (Notice: This is a tax on CONSUMPTION not production.)

Answer choices: Increase, Decrease, Stay the same and uncertain

A. Demand

B. Supply

C. Quantity of cigarettes produced and sold

D. Price paid by cigarette consumers

E. Total expenditures on cigarettes by consumers

F. Price received by cigarette producers

G. Total revenue of cigarettes by producers

H. Consumer Surplus for peanut butter consumers

I. Producer Surplus for peanut butter suppliers

J. Total surplus to consumers and producers of cigarettes

K. Welfare of society as a whole