The American Cancer Society announces the results of a study of 10,000 smokers and nonsmokers. A 21-year-old smoker who continues smoking two packs a day has a life-time expectancy that is 20 years shorter than a 21-year-old nonsmoker. As a result of this announcement, the cigarette equilibrium

. (LO3)

a) price will rise and quantity sold will rise

b) price will rise and quantity sold will fall

c) price will fall and quantity sold will fall

d) price will fall and quantity sold will rise