An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the

Name: An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Increasing the excise tax on cigarettes increases the cost of production for producers, which shifts the supply curve leftward, resulting in a higher price for consumers. This shift does not affect the demand for cigarettes, which remains unchanged. Therefore, the correct answer is D.

An Increase in the Excise Tax on Cigarettes Raises the Price