The government in your country is considering three programs that affect the market for cigarettes. Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking Program 2: A price-support program for tobacco farmers. Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases. Determine the impact on the market for cigarettes if Program 2 is implemented. Impact on demand Impact on supply impact on price Impact on quatity Here are the list of choices to choose one from for each Quantity above equilibrium Change in price uncertain Excess supply Excess demand Shift inwards/to left Quantity below equilibrium Increase towards equilibrium decrease towards equilibrium no impact change in quantity uncertain Price below equilibrium

Essentials of Economics (MindTap Course List)
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ISBN:9781337091992
Author:N. Gregory Mankiw
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Chapter5: Elastic And Its Application
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The government in your country is considering three programs that affect the market for cigarettes.

  • Program 1: Media campaigns and labeling requirements aimed at making the public aware of the dangers of cigarette smoking
  • Program 2: A price-support program for tobacco farmers.
  • Program 3: A cap on the number of cases of cigarettes sold per quarter at 20,000 cases.

Determine the impact on the market for cigarettes if Program 2 is implemented.

Impact on demand

Impact on supply

impact on price

Impact on quatity

Here are the list of choices to choose one from for each

  1. Quantity above equilibrium
  2. Change in price uncertain
  3. Excess supply
  4. Excess demand
  5. Shift inwards/to left
  6. Quantity below equilibrium
  7. Increase towards equilibrium
  8. decrease towards equilibrium
  9. no impact
  10. change in quantity uncertain
  11. Price below equilibrium
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