What Would Happen to the Equilibrium Price and Quantity for the Market

question 56

Multiple Choice

What would happen to the equilibrium price and quantity for the market for cigarettes if the government increased the tax and a scientific study came out confirming that smoking cigarettes increased the rate of heart disease?

• A) Equilibrium price will be indeterminate and equilibrium quantity will go down.
• B) Equilibrium price will go up and equilibrium quantity will go up.
• C) Equilibrium price will go down and equilibrium quantity will be indeterminate.
• D) Equilibrium price will be indeterminate and equilibrium quantity will go up.
• E) Equilibrium price will go up and equilibrium quantity will be indeterminate.

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Definitions:

Circadian Rhythms

Biological processes that follow an approximately 24-hour cycle, affecting sleep, behavior, and physiological processes in living organisms.

Melatonin

A hormone produced by the pineal gland that regulates sleep and wake cycles, often used as a supplement to treat sleep disorders.

Delayed Sleep Phase Type

A condition where an individual's sleep is delayed by two or more hours beyond the conventional bedtime, leading to difficulty in waking up at a desired time.

Nightmare Disorder

Sleep disorder characterized by nightmares frequent enough to cause significant distress or impairment in functioning.