Which of the following could likely cause both the equilibrium price and equilibrium quantity of cigars (assume that cigars are normal goods) to increase? unusually good weather that results in a bumper crop of cigar tobacco a drought that sharply reduces tobacco output an increase in consumer income a decrease in the price of cigarettes (a substitute good)
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When consumers have more disposable income, they are more likely to purchase cigars, leading to an increase in demand. This increase in demand would result in a higher equilibrium price and quantity of cigars. Show more…
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