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anymous anymous
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2 months ago

Tobacco production is one of the more heavily subsidized industries in the United States. Suppose that as a result of intense lobbying from health-related concerns, Congress repeals the tobacco firms' subsidies. Which of the following scenarios would likely occur?



▸

The tobacco firms' supply curve would shift rightward, as it would now be cheaper to produce each level of output.



▸

The tobacco firms' supply curve would shift leftward, since it would now cost more to produce each level of output.



▸

The tobacco firms would not experience any shift in their supply curves; subsidies don't affect output.



▸

There would be a movement along the supply curve for tobacco, but the supply curve would not shift.

Textbook 
Economics

Economics


Edition: 12th
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carolyne254carolyne254
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The tobacco firms' supply curve would shift leftward, since it would now cost more to produce each level of output.
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anymous Author
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2 months ago
Thanks
Cdfields
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Yesterday
Just got PERFECT on my quiz
Marcie D
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2 hours ago
This helped my grade so much Perfect
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