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.

---

Definitions:

Agreeableness

A personality trait characterized by compassion and cooperativeness towards others, reflecting a disposition towards harmony and social compatibility.

Conscientiousness

A personality trait characterized by organization, dependability, discipline, and a strong sense of duty.

Extroversion

A personality trait that is characterized by sociability, talkativeness, assertiveness, and a high level of energy when interacting with others.

Personality Dimensions

Fundamental traits or characteristics that are used to describe and differentiate individuals' personalities.