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

Question

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A reduction in the tax per pack paid by sellers of cigarettes effectively decreases the cost of production for those sellers. This decrease in cost would lead to an increase in the quantity supplied at every price level, which is represented graphically by a rightward shift of the supply curve for cigarettes. This shift indicates that at the same prices, sellers are willing and able to supply more cigarettes, leading to a potential decrease in the market price of cigarettes, assuming demand remains constant.

If Congress Decides to Reduce the Tax Per Pack Paid