Recall the Application about the decrease in taxes on cigarettes in several Canadian provinces in 1994 to answer the following question(s).
-Recall the Application. The change in demand for cigarettes resulting from the decrease in taxes would normally create, ceteris paribus,

Question

Quizplus · Accepted Answer

The decrease in taxes on cigarettes would lead to a decrease in their price and an increase in their quantity demanded. This would induce an increase in their quantity supplied by producers in order to meet the higher demand. Therefore, the correct answer is (C) an increase in their quantity supplied.

Recall the Application About the Decrease in Taxes on Cigarettes