1. (Shifting Demand) Using demand and supply curves, show the effect of each of the following on the market for cigarettes:

a. A cure for lung cancer is found.

b. The price of cigars increases.

c. Wages increase substantially in states that grow tobacco.

d. A fertilizer that increases the yield per acre of tobacco is discovered.

e. There is a sharp increase in the price of matches, lighters, and lighter fluid.

f. More states pass laws restricting smoking in restaurants and public places.

11. (Equilibrium) "If a price is not an equilibrium price, there is a tendency for it to move to its equilibrium level. Regardless of whether the price is too high or too low to begin with, the adjustment process will increase the quantity of the good purchased." Explain, using a demand and supply diagram

13. (Market Equilibrium) Determine whether each of the following statements is true, false, or uncertain. Then briefly explain each answer. a. In equilibrium, all sellers can find buyers. b. In equilibrium, there is no pressure on the market to produce or consume more than is being sold. c. At prices above equilibrium, the quantity exchanged exceeds the quantity demanded. d. At prices below equilibrium, the quantity exchanged is equal to the quantity supplied

14. (Changes in Equilibrium) What are the effects on the equilibrium price and quantity of steel if the wages of steelwork- ers rise and, simultaneously, the price of aluminum rises?