SUPPLY AND DEMAND ASSIGNMENT –

By Sevde Karaca

Market: Cigarettes

Article Link: http://www.dailymail.co.uk/news/article-4294664/Smokers-hit-Budget-cigarette-price-rise-TONIGHT.html

In the UK the price of 20 -pack cigarettes increases 35 pences. Tonight, March 9th 2017 30g pack of rolling tobacco will increase in 44 pences. On May 20 a new minimum duty was introduced with a packet price of £7.35  after tonight it is not possible to buy a pack no lesser than £8.82. With the price increase the demand would fall. Causing the demand curve shift to the right.
Screen Shot 2017-03-09 at 12.27.17 PM

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