Figure 4-3

-Refer to Figure 4-3.The graph shows the demand for cigarettes.The arrows are consistent with which of the following events?

Question

Figure 4-3
 
-Refer to Figure 4-3.The graph shows the demand for cigarettes.The arrows are consistent with which of the following events?

Quizplus · Accepted Answer

The arrows indicate a decrease in demand, which is consistent with a tax being placed on cigarettes. This would increase the price of cigarettes, leading to a decrease in demand. The other options would not necessarily lead to a decrease in demand. An increase in the price of a complement (option A) would actually increase the demand for cigarettes, while health warnings (option B) may have some impact on demand, but not necessarily a decrease. Similarly, foreign bans (option C) may have some impact on demand, but would not necessarily decrease it.

Figure 4-3 -Refer to Figure 4-3.The Graph Shows the Demand for Cigarettes.The