Suppose That the Market for Cigarettes Is Initially in Equilibrium

question 3

Multiple Choice

Suppose that the market for cigarettes is initially in equilibrium and is perfectly competitive.The demand curve can be expressed as ; the supply curve can be expressed as Quantity is expressed in millions of boxes per month.Now suppose that the federal government imposes a production quota on cigarettes of 30 million boxes per month.What are the new amount traded and the price in this market?

• A) Q = 40; P = 20
• B) Q = 20; P = 40
• C) Q = 30; P = 30
• D) Q = 30; P = 15

---

Definitions:

Religious Rituals

Ceremonies or practices performed in a prescribed manner by a religion to express devotion, mark significant life events, or connect with the divine.

Body Decoration

Refers to the various ways individuals modify their physical appearance through tattoos, piercings, makeup, and other methods for aesthetic, cultural, or social reasons.

Chants

Repetitive and rhythmic speaking or singing of words or sounds, often used in religious or spiritual contexts.

Multiculturalism

Multiculturalism is the coexistence of diverse cultures, where cultural differences are acknowledged and valued.