The following graph shows the demand and supply curves in the market for cigarettes for adults. The government has implemented a tax aimed at reducing the quantity of cigarettes purchased, thus reducing smoking. Which of the following is true about the outcome of this policy and why? 7d.3 a. Demand for cigarettes is inelastic, so a tax on cigarettes leads to only a small decrease in cigarette purchases. The policy is minimally effective in reducing smoking. b. Demand for cigarettes is inelastic, so a tax on cigarettes leads to a significant decrease in cigarette purchases. The policy is effective in significantly reducing smoking. c. Supply of cigarettes is inelastic, so a tax on cigarettes leads to only a small decrease in cigarette purchases. The policy is minimally effective in reducing smoking. d. Supply of cigarettes is inelastic, so a tax on cigarettes leads to a significant decrease in cigarette purchases. The policy is effective in significantly reducing smoking