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As a Government Official,Nolan Wants Fewer People to Smoke

Question 9

Multiple Choice

As a government official,Nolan wants fewer people to smoke.He has decided to use taxes to discourage people from smoking.How would he describe his decision to an economist?


A) If I increase taxes on cigarettes,there will be an increase in demand,which means fewer people are smoking.
B) If I decrease taxes on cigarettes,there will be a decrease in demand,which means fewer people are smoking.
C) If I decrease taxes on cigarettes,there will be an increase in quantity demanded,which means fewer people are smoking.
D) If I increase taxes on cigarettes,there will be a decrease in demand,which means fewer people are smoking.
E) Taxes will have no effect on demand for cigarettes.

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