According to this Application after the government deceased
According to this Application, after the government deceased cigarette taxes in several Canadian provinces, demand for cigarettes ________ in these provinces, shifting the demand curve to the ________.
Solution
Demand for cigarettes increases in these provinces, shifting the demand curve to the right.
Reason: Decrease in tax decreases the price of cigarettes. Once the price is decreased demand for the product will increase, because at lower price higher quantity is demanded. It shows rightward movement of the demand curve.
