A
The impact on the cigarette market when the remedy for lung cancer is discovered.
Concept Introduction:
Demand curve: The demand curve is the graphical representation of the relationship between the
Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.
A
Explanation of Solution
- A cure for lung cancer is found
Other things remaining the same, after the cure for lung cancer is found, the fear of getting non-curable cancer in the mind of the smokers will no longer exist. Now they will become fearless and the smoking might increase. The demand for cigarettes will increase. There will be a rightward shift in the demand curve from D1 to D2, supply remaining same at S1.
B
The impact on the cigarette market when there is a rise in the price of cigars.
Concept Introduction:
Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.
Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.
B
Explanation of Solution
The price of Cigars increases
Other things remaining the same, as the price of the cigarette will increase, the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.
C
The impact on the cigarette market when the wages in the tobacco growing states increases.
C
Explanation of Solution
Wages increases substantially in the states that grow tobacco.
Other things remaining the same, as the wages for growing tobacco has increased, it implies that the cost of production of producing cigarettes has increased. Thus the price of cigarette will increase; the demand for the cigarette will decrease as per the demand law. But as the cigarette is all about addiction, the demand is more inelastic. So the demand will fall but at a much lower rate as compared to the price.
Introduction:
Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.
Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.
D
The impact on the cigarette market with the discovery of a fertilizer that increases the yield per acre of tobacco.
D
Explanation of Solution
A fertilizer that increases the yield per acre of tobacco is discovered
Other things remaining the same, as the fertilizer that increases the yield per acre of tobacco is discovered, it implies that the supply of tobacco will be more, and thus the supply of cigarette will increase. There will be a rightward shift in the supply curve from S1 to S2, supply remaining same at D1.
Introduction:
Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.
Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.
E
The impact on the cigarette market with an increase in the prices of lighters, matches and lighter fluid.
E
Explanation of Solution
There is a sharp increase in the price of matches, lighters and lighter fluid
Other things remaining the same, as there is a sharp increase in the price of matches, lighters and lighter fluid, it implies that the demand of cigarette will be less, as the complementary goods price has increased There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.
Introduction:
Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.
Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.
F
The impact on the cigarette market when the laws restricting smoking in public places and restaurants have been passed in many states.
F
Explanation of Solution
More states pass laws restricting the smoking in restaurants and public places.
Other things remaining the same, as more states pass laws restricting the smoking in restaurants and public places, implies restriction in smoking. It will lead to decreases in the demand of cigarette. There will be a leftward shift in the demand curve from D1 to D2, supply remaining same at S1.
Introduction:
Demand curve: The demand curve is the graphical representation of the relationship between the price of a good or service and the quantity demanded for a given period of time. The X (vertical) axis represents the price and quantity demanded in the Y (horizontal) axis.
Supply curve: The supply curve is the graphical representation of the relationship between the price of a good or service and the quantity supplied for a given period of time. The X (vertical) axis represents the price and quantity supplied in the Y (horizontal) axis.
Want to see more full solutions like this?
Chapter 4 Solutions
MindTap Economics, 1 Term (6 Months) Printed Access Card for Mceachern's ECON MACRO, 6th
- Using the graph on the right, determine the per unit prices of capital and labour. 20- Given the information provided about the isocost lines, we know that the per unit price of capital is TC=$100 and the per unit price of labour is 16- TC $80 ○ A. $50; $20 ○ B. $2; $5 ○ C. $5; $2 ○ D. $20; $50 E. not determinable; not determinable Quantity of K 12 TC $60 TC $40 0 10 20 30 Quantity of L 40arrow_forwardThe diagram to the right contains isocost lines A and B. If the price of capital is the same for both lines, then the difference between isocost line A and isocost line B is that OA. the total cost is larger along B. B. the level of output is lower along A. C. both capital and labour are cheaper along A. OD. labour is more expensive along A. ○ E. labour is more expensive along B. Capital Labourarrow_forwardFor the firm whose cost curves are shown at right, the minimum efficient scale is ○ A. between 60 and 140 units of production. OB. about 20 units of production. OC. about 60 units of production. OD. about 100 units of production. OE. the level of fixed cost corresponding to SRATC2. SRATC₁ LRAC SRATC4 SRATC₂ SRATC3 เนด เad iso C 20 20 40 60 80 100 120 140 160 180 200 Output per Periodarrow_forward
- SRATC₂ SRATC3 In the figure, increasing long-run average total costs for the firm are confined to the output range OA. where the LRAC curve is downward sloping. B. above 80 units of output. O C. above 50 units of output. OD. between 50 and 80 units of output. SRATC₁ OE. between 10 and 100 units of output. ---- SRATC LRAC 10 20 30 40 50 60 70 80 90 100 Output per Periodarrow_forwardFor the firm whose cost curves are shown at right, the minimum efficient scale is OA. between 10 and 50 units of production. OB. about 80 units of production. O C. the level of fixed cost corresponding to SRATC₁. OD. about 10 units of production. ○ E. about 50 units of production. Cost per Unit SRATC₁ LRAC SRATC2 SRATC4 SRATC3 10 20 30 40 50 60 70 80 Output per Period 90 100arrow_forward• 3 different people working at any companies under the BPO industry in the Philippines. • What are the 3 different Vision, Mission, Duties and Responsibilities and Career Path of these people in their companies under the BPO industry?arrow_forward
- Module 6 ⚫(1902) Buckner C X | (1902) How to d x (1902) Buckner F X (1902) Productic X WP Videoplayer Canvas Login | Ir x | + Σ R mybrcc.instructure.com/courses/417310/discussion_topics/3420114?module_item_id=20155705 Spring 2025 Home Announcements Modules Syllabus Grades 8 People BRCC-_Library DLASC Module 6 Discussion - Business Costs Relaunch to update For this discussion, think about where you work or a business you have a significant amount of knowledge about. What is a common product that the business sells? What are the main costs the business has to incur in order to be able to sell that product? Which of these costs are fixed and which are variable? How much additional costs would be incurred if it were to sell one additional unit of that product (marginal cost)? Write a discussion thread about this business, the product it commonly sells, and your answers to the above questions. Also, respond to at least two threads created by your classmates. In these responses, share what…arrow_forwardRefer to the video to answer the following: • what are all the key policies or all the strategies the Philippine government should prioritize to accelerate sustainable economic growth? • these should consider the Philippines current economic challenges, including inflation, unemployment, and the need for digital transformation. "The Philippines' Strong Economic Growth" (YouTube link: https://youtu.be/1YtEoGp2ZeM?siJQfIv5kbu0txVsLL.)arrow_forwardsolve about this qarrow_forward
Microeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506893Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Macroeconomics: Private and Public Choice (MindTa...EconomicsISBN:9781305506756Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
Economics: Private and Public Choice (MindTap Cou...EconomicsISBN:9781305506725Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. MacphersonPublisher:Cengage Learning
