Sample Problems and answers 1. The price of cigars increases. Wages increase substantially in states that grow tobacco. A fertilizer that increases the yield per acre of tobacco is discovered. There is a substantial rise in the price of matches and lighter fluid.
More states pass laws restricting smoking in public places.
This should shift the demand curve for cigarettes to the right. This should shift the demand curve for cigarettes to the right. This should shift the supply curve of cigarettes. This should shift the demand curve for cigarettes to the left. This should shift the supply curve of cigarettes to the left.