Question: 1. What are the likely consequences on the U. S. market for tobacco products of theevents listed below?a. Does the supply curve or the demand curve shift? In which direction?b. State whether the equilibrium price and quantity increase, decrease or staythe same. c. Show the changes using a standard demand/supply diagram. i. The Food and Drug Administration classifies tobacco as an”addictive” substance. ii. Congress votes to raise the excise tax on all tobacco productsiii. Hurricane Rita dumps 15 inches of rain on North Carolina anddestroys 80 percent of that state’s tobacco cropiv. Medical evidence that more than two cups of coffee a day(considered by many to be a substitute for smoking) greatlyincreases the risk of stomach cancer.
Originally posted 2018-07-08 19:55:17. Republished by Blog Post Promoter