Answer:
The correct answer is: An increase in the negative externality caused by cigarette smoking.
Explanation:
If government pays farmers not to plant tobacco this lead to a decrease in tobacco production. This will further cause the supply of a tobacco to decrease. As a result, the supply curve of tobacco will shift leftwards.
A decrease in supply of tobacco will increase its price. As tobacco is used to make cigarettes, the increase in its price will increase the price of producing cigarettes. As a result, the supply of cigarettes will decrease causing a leftward shift in the supply curve of cigarettes.
As the supply decreases, the price of cigarettes will decrease. People will consume less quantity of cigarettes. This will cause a reduction in the negative externality caused by smoking cigarettes.