Author Question: If Congress decides to increase the tax per pack paid by sellers of cigarettes, other things being ... (Read 26 times)

Arii_bell · **on:** Jun 30, 2018

If Congress decides to increase the tax per pack paid by sellers of cigarettes, other things being equal, the price of cigarettes will rise. This rise in prices can be attributed to a(n):
a. upward movement along the supply curve for cigarettes.
b. rightward shift of the supply curve for cigarettes.
c. upward movement along the demand curve for cigarettes.
d. leftward shift of the supply curve for cigarettes.

Question 2

If you were a government official and wanted to raise the price of wheat, which of the following actions would you take?
a. Take wheat from government storage and sell it.
b. Encourage farmers to use more fertilizer.
c. Lower the price of rye.
d. Subsidize purchases of farm equipment.
e. Encourage farmers to grow less wheat.