Nosmo King is an anti-smoking crusader who finds that people who don't recognize him sometimes offer him a cigarette. He always takes the cigarette and throws it away. This happens ten times a year, and Nosmo figures that this way there are ten fewer cigarettes for other people to smoke.
a. How does Nosmo's policy affect the demand and supply curves for cigarettes?
b. How does Nosmo's policy affect the equilibrium quantity of cigarettes?
c. Is Nosmo correct in believing that he reduces the number of cigarettes that other people smoke? Is he correct in believing that he reduces it by ten per year? How do you know? That other people smoke? Is he correct in believing that he reduces it by ten per year? How do you know?