In the past, many people smoked in restaurants. Restaurant owners have noticed that a fall in smoking, brought about by a tax on cigarettes, has lowered their meal sales. How would this be illustrated on demand and supply diagrams for cigarettes and for meals?
- Acigarettes: a movement along the demand curve; meals: a shift inwards of the demand curve
- Bcigarettes: a movement along the supply curve; meals: a movement along the demand curve
- Ccigarettes: a shift outwards of the demand curve; meals: a shift outwards of the supply curve
- Dcigarettes: a shift outwards of the supply curve; meals: a movement along the supply curve