5. Suppose that a number of new television series romanticizing life in the 1940's stimulates the appeal of cigarette smoking for teenagers. At the same time, suppose that new tobacco sales taxes dramatically raise the costs of bringing cigarettes to market. Using conventional supply and demand analysis, one would expect the combined effect of these changes on the cigarette market to be: a. b. C. d. an increase in equilibrium price, with the change in equilibrium quantity uncertain a decrease in equilibrium price, with the change in equilibrium quantity uncertain. an increase in equilibrium quantity, with the change in equilibrium price uncertain. a decrease in equilibrium quantity, with the change in equilibrium price uncertain.

Brief Principles of Macroeconomics (MindTap Course List)
8th Edition
ISBN:9781337091985
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter4: The Market Forces Of Supply And Demand
Section: Chapter Questions
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5.
Suppose that a number of new television series romanticizing life in the 1940's
stimulates the appeal of cigarette smoking for teenagers. At the same time,
suppose that new tobacco sales taxes dramatically raise the costs of bringing
cigarettes to market. Using conventional supply and demand analysis, one would
expect the combined effect of these changes on the cigarette market to be:
a.
b.
C.
d.
an increase in equilibrium price, with the change in equilibrium quantity
uncertain
a decrease in equilibrium price, with the change in equilibrium quantity
uncertain.
an increase in equilibrium quantity, with the change in equilibrium price
uncertain.
a decrease in equilibrium quantity, with the change in equilibrium price
uncertain.
Transcribed Image Text:5. Suppose that a number of new television series romanticizing life in the 1940's stimulates the appeal of cigarette smoking for teenagers. At the same time, suppose that new tobacco sales taxes dramatically raise the costs of bringing cigarettes to market. Using conventional supply and demand analysis, one would expect the combined effect of these changes on the cigarette market to be: a. b. C. d. an increase in equilibrium price, with the change in equilibrium quantity uncertain a decrease in equilibrium price, with the change in equilibrium quantity uncertain. an increase in equilibrium quantity, with the change in equilibrium price uncertain. a decrease in equilibrium quantity, with the change in equilibrium price uncertain.
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