An increase in the excise tax on cigarettes raises the price of cigarettes by shifting the demand curve for cigarettes leftward.
<h3>What is the effect of an increase in excise tax?</h3>
When the excise tax is increased, it would become more expensive to purchase cigarettes. This would discourage consumers from purchasing cigarettes.
This would affect the demand for cigarettes. Thus, the demand curve would be affected. The demand curve is a graph that shows the relationship between price and quantity demanded. When there is a decrease in demand, the demand curve would shift to the left.
Here are the options:
demand curve for cigarettes rightward.
-demand curve for cigarettes leftward.
-supply curve for cigarettes rightward.
-supply curve for cigarettes leftward.
To learn more about the demand curve, please check: brainly.com/question/25140811
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