.. Chapter 3 > InQuizitive: Chaptor 3: The Markot at Work: Supply and Demand E P

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.. Chapter 3 > InQuizitive: Chaptor 3: The Markot at Work: Supply and Demand E Page(s) 88-89 3.3. What determines supply? Suppose the government believes that there are too many cigarettes in the market. Which of the following policies could the government implement to decrease the supply of cigarettes? Marlboro Correct Answer(s) Drag appropriate answerís) here Subsidize tobacco farmers, thus lowering theTax the manufacturing of cigarettes price of tobacco Tax consumers on the purchase of cigarettes. Tax the tobacco crop. Drag appropriate answer(s) here Incorrect Answer(s)

Explanation / Answer

The policies which may be adopted are:

- Tax the tobacco crop

- Tax the manufacturing of cigarettes

(subsidizing tobacco farmers would increase supply of cigarettes and taxing consumers would decrease demand for cigarettes)

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