Answer to Question #324314 in Macroeconomics for Raveena

Question

3. Using supply and demand curves, show the effect of each of the following events on the market for cigarettes.

a. A cure for lung career cancer is found.

b. The price of cigarette increases.

c. Wage increase substantially in states that grow tobacco.

d. A fertilizer that increase the yield per acre of tobacco is discovered.

e. More state pass laws restricting smoking in public places 

Answer 1

a)

b)

c)

d)

e)