The Cost of Producing Cigarettes in the United States Has

question 179

Multiple Choice

The cost of producing cigarettes in the United States has increased and at the same time, more and more Americans are choosing to not smoke cigarettes.Which of the following best explains the effect of these events in the cigarette market?

• A)The supply curve has shifted to the right and the demand curve has shifted to the left. As a result there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
• B)Both the supply and demand curves have shifted to the right. As a result, there has been an increase in the equilibrium quantity and an uncertain effect on the equilibrium price.
• C)Both the supply and demand curves have shifted to the left. As a result, there has been a decrease in the equilibrium quantity and an uncertain effect on the equilibrium price.
• D)The supply curve has shifted to the right and the demand curve has shifted to the left. As a result, there has been an increase in the equilibrium price and an uncertain effect on the equilibrium quantity.

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Definitions:

Immigrant

An individual who moves from one country to another with the intention of settling in the new country.

Prestige Pictures

Films produced with a higher budget and artistic aspirations, often aimed at winning critical acclaim and awards.

MGM

Metro-Goldwyn-Mayer, a legendary film studio known for its extensive library of movies, classic Hollywood films, and the iconic roaring lion logo.

Spoiled

Refers to food that has become unfit for consumption due to bacteria growth or other processes, or to a person, typically a child, who has become overindulged and lacks discipline.