Question
Evaluate the following statement to see if it makes sense or not. Support your answer with graphs and words. If more Canadians refrain from smoking
Evaluate the following statement to see if it makes sense or not. Support your answer with graphs and words.
"If more Canadians refrain from smoking cigarettes as is advocated by health practitioners, the demand for cigarettes will fall. The decrease in the demand for cigarettes will cause the price of cigarettes to fall. The lower price of cigarettes, however, will then increase the demand for cigarettes. In the new equilibrium, Canadians might end up buying more cigarettes than they did initially, contrary to the wishes of the health practitioners.
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