If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the equilibrium price of cigarettes will fall. This fall in the equilibrium price can be attributed to a(n):

Question

Quizplus · Accepted Answer

A reduction in tax per pack paid by sellers of cigarettes would decrease the cost of production for the sellers, leading to a rightward shift of the supply curve for cigarettes, resulting in a lower equilibrium price. Therefore, the correct choice is B, a rightward shift of the supply curve for cigarettes.

If Congress Decides to Reduce the Tax Per Pack Paid