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If Congress Decides to Reduce the Tax Per Pack Paid

Question 137

Multiple Choice

If Congress decides to reduce the tax per pack paid by sellers of cigarettes, other things being equal, the equilibrium price of cigarettes will fall. This fall in the equilibrium price 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.

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