A Wall Street Journal headline reads: "Cigar Shortage Draws New Brands into Market." The shortage resulted from a renewed interest in smoking cigars. What best describes facts behind the headline?

Question

Quizplus · Accepted Answer

The renewed interest in smoking cigars indicates an increase in demand, shifting the demand curve to the right. This increase in demand leads to a higher price, which encourages more supply, but the supply has not increased enough to meet the new demand, resulting in a shortage.

A Wall Street Journal Headline Reads: "Cigar Shortage Draws New