1) Which is the most probable outcome if a government raises the tax o

1) Which is the most probable outcome if a government raises the tax on the sale of cigarettes and tobacco?A) higher price and higher quantity traded B) higher price and lower quantity tradedC) Lower price and higher quantity demanded D) lower price and lower quantity traded2) Which factor below would not cause a rightwards shift of the supply curve for the agricultural sector?A) government subsidies for farmersB) favourable weather conditionsC) technological progress in agriculture D) higher costs of fertilisers

Answer»

Answer:

1) B) higher price and LOWER quantity traded

2) D) higher COSTS of FERTILIZERS