Answer the following true/false questions by stating if the statement is true or false and by providing an explanation for the answer you gave. Your explanation should be detailed enough so that it establishes not only is your answer correct but that the opposite answer would be incorrect. All points for the true/false questions will be given for the explanation.

A. Lowering the legal age to purchase products would increase the supply of cigarettes. (T or F)

B. Increasing the price of cigarettes would decrease the quantity demanded. (T or F)

C. If a new excise tax of fifty cents is levied on suppliers of packs of cigarettes, consumers will end up paying fifty cents more per pack. (Assume an upward sloping supply curve and a downward sloping demand curve. T or F)

Refer to the table below to answer the following questions.

Price $	Quantity Demanded Packs	Quantity Supplied Packs
1	80	5
5	60	60
10	40	100
15	18	170
20	0	350

D. A surplus of 60 packs would exist at a price of $10.00. (T or F)

E. A price ceiling of $15.00 would cause a shortage of cigarettes. (T or F)