Question

1) Which is the most probable outcome if a government raises the tax on the sale of cigarettes and tobacco?

A) higher price and higher quantity traded

B) higher price and lower quantity traded

C) Lower price and higher quantity demanded

D) lower price and lower quantity traded

2) Which factor below would not cause a rightwards shift of the supply curve for the agricultural sector?

A) government subsidies for farmers

B) favourable weather conditions

C) technological progress in agriculture

D) higher costs of fertilisers

Answer 1

Answer:

1) B) higher price and lower quantity traded

2) D) higher costs of fertilizers