All Grapefruit Juice Producers Have Decided to Blend Tangerine Juice

question 9

Multiple Choice

All grapefruit juice producers have decided to blend tangerine juice with grapefruit juice.This blend results in a higher cost of production, but studies show that consumers prefer the taste of the blend to straight grapefruit juice.What will happen to the equilibrium price and quantity of grapefruit juice?

• A)The equilibrium quantity increases but the effect on the equilibrium price is uncertain.
• B)The equilibrium price falls and the equilibrium quantity increases.
• C)The equilibrium price rises but the effect on the equilibrium quantity is uncertain.
• D)The equilibrium price rises and the equilibrium quantity increases.
• E)The equilibrium price rises and the equilibrium quantity remains unchanged.

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Definitions:

Sociological Research

The study of society and social behavior by examining the groups, cultures, organizations, social institutions, and processes that people develop.

Survey Research

A method of collecting data and information from a sample of individuals by means of questionnaires or interviews.

Unreliability

The characteristic of being not reliable or dependable, often resulting in unpredictability and inconsistency.

Undercounting

The act of recording less than the actual number or amount, often referring to the miscounting of populations in censuses or surveys.