Which of the following is a supply shifter for cigarettes?
A) household incomes
B) price of cigars
C) number of smokers
D) cigarette taxes

Question

Quizplus · Accepted Answer

Cigarette taxes directly affect the cost of producing cigarettes, thereby shifting the supply curve. Taxes increase the cost of production for suppliers, leading them to supply less at any given price or require a higher price to supply the same quantity, effectively shifting the supply curve.

Which of the Following Is a Supply Shifter for Cigarettes