One NEWS WIRE article states that an increase in cigarette prices of 10 percent reduced cigarette sales by about 4 percent.What is the effect of higher prices in the market for cigarettes?

Question

Quizplus · Accepted Answer

The effect of higher prices in the market for cigarettes, leading to a reduction in cigarette sales, is represented by a movement up the demand curve. This is because the demand curve shows the relationship between price and quantity demanded, and a movement along the curve indicates a change in quantity demanded in response to a change in price, without the demand curve itself shifting.

One NEWS WIRE Article States That an Increase in Cigarette