Studies have shown that smoking cigarettes can cause heart disease. Assume this is true, and favorable weather has increased the tobacco harvest in North Carolina. In the market for cigarettes, these two developments would
A) increase demand and increase supply resulting in an increase in the equilibrium quantity and an uncertain effect on the equilibrium price of cigarettes.
B) decrease demand and decrease supply, resulting in an increase in the equilibrium quantity and a decrease in the equilibrium price of cigarettes.
C) decrease demand and increase supply, resulting in a decrease in the equilibrium price and an uncertain effect on the equilibrium quantity of cigarettes.
D) decrease demand and increase supply, resulting in an increase in both the equilibrium price and the equilibrium quantity of cigarettes.
C
You might also like to view...
If the nominal interest rate in an economy is 9% and the expected inflation rate is 6%, then the expected real interest rate in the economy is:
A) 15%. B) 3%. C) 6%. D) 9%.
Those who favor changes in the market for health care that would make it more like the markets for other goods and services are generally in favor of universal health care coverage
Indicate whether the statement is true or false
As the time to respond to a change in market conditions increases, the odds of supply being elastic: a. Increase
b. Decrease. c. Stay the same. d. Cannot be determined.
The cost of producing an additional unit of output is the firm's
a. marginal cost. b. productivity offset. c. variable cost. d. average variable cost.