Suppose That the Demand and Supply Curves for Green Tea

question 39

Multiple Choice

Suppose that the demand and supply curves for green tea are stated functionally as Q_D= 700 - P and Q_S= 400 + 2P. Suppose also that a study is released proving that the regular consumption of green tea prolongs life by at least a decade, and the result is that the quantity demanded of green tea doubles at the initial price. The equilibrium price in this case will increase by

• A)100%
• B)140%
• C)200%
• D)300%
• E)- insufficient information to compute

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Individuals who believe that their abilities and intelligence can grow and change through effort and experience.

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