In the three months before a $1 per pack cigarette tax took effect in Alaska, smokers bought 175 million more cigarettes than during the same period a year earlier. What explains this behavior by consumers?
The increase of $1 per pack is pretty significant given the price of cigarettes. Many smokers may have decided that the best way to save money would be to stockpile cigarettes before the expected tax increase took effect. So an expectation of a price increase in the near future caused the current demand curve for cigarettes to shift to the right (an increase in demand).
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Use the figure below to answer the following question. 
The case of complementary goods is represented by figure
A. 1. B. 2. C. 3. D. 4.
What are the factors that determine a buyer's purchasing decision?
What will be an ideal response?
To maintain a price below the equilibrium price,
a. demand must increase. b. supply must increase. c. the government must set a ceiling price. d. supply must decrease.
Refer to the following graph.
In New York City, the rent on many apartments is set below market rates. As a result, many people find that the only way to obtain an apartment is to make illegal payments to landlords. If Pc is the controlled rent, a best estimate of such "key" money is shown as:
A. Pf. B. Pf minus Pc. C. Pe. D. Pe minus Pc.