What is the likely consequence on the U.S. market for tobacco products of the event listed below? Sixteen states sue the major tobacco company for billions of dollars because of tobacco- related costs in their Medicaid program. (3points) 

a. Does the supply curve or the demand curve shift? In which direction? 

b. State whether the equilibrium price and quantity increase, decrease or stay the same. c. Show the changes using a standard demand/supply diagram.

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The likely consequences on the US market for tobacco products of the event listed below a Shift in S... View the full answer