Author Question: To finance medical care, the federal government raises the tax per pack paid by sellers of ... (Read 61 times)

rl · **on:** Jun 30, 2018

To finance medical care, the federal government raises the tax per pack paid by sellers of cigarettes. Other things being equal, the price of cigarettes rises because of 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

Which of the following would not cause a shift in the supply curve for a good?
a. An increase in demand for that good.
b. An increase in the cost of labor used to produce that good.
c. A change in the cost of raw materials used to produce that good.
d. A decrease in the cost of machinery used to produce that good.