The Economic Demand and Price of Tobacco

Economic Question
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1 Likely Consequences
1 The new announcement of the Food and Drug Administration would definitely reduce the price of Tobacco. As could be seen from the graph below, there will be shift from P* to P1 and from Q* to Q1 due since the demand would reduce for Tobacco. Hence, price would also be reduced as provided in new demand curve.
2 The additional excise tax that is imposed upon tobacco will cause a leftward shift of the available supply of the commodity. This is mostly because of the fact that an excise tax imposes an additional cost for tobacco manufacturers to produce their products. Because of this shift, there will a corresponding shift from P* to P1, which would result to a concomitant increase in the regular prices of tobacco.
3 The price for tobacco would also increase when there is a natural disaster. Note that the production quantity of Tobacco is dependent upon the available resources. However, because of natural disaster fewer tobacco will be created, which shifts the curve from Q* to Q1. In turn, this would result to the new equilibrium (B) wherein the price (P1) is higher than the previous price (P*).
4 The suit filed against Tobacco producers would increase to...