MIRACLE VEGGIE EQUILIBRIUM Price Quantity Apply the Skill Economists are also called on to explain the effects of government interventions in the economy. Sometimes those interventions are not deliberate efforts to affect the economy but secondary effects of government actions taken for policy reasons. For public health reasons, Congress passes a law imposing a tax on e-cigarettes. A year later, supply of that product has dropped, prices have risen, and demand has fallen. Explain these results and illustrate them with a graph