Suppose That There Is a Renewed Interest in Eating Caviar

question 55

Multiple Choice

Suppose that there is a renewed interest in eating caviar at the same time that the supply of Russian caviar shrinks. What would be the most likely effect of these events on the price and quantity of caviar sold?

• A) Price rose and quantity sold fell.
• B) Price rose and the effect on the quantity of caviar sold is ambiguous.
• C) Price fell and the effect on the quantity of caviar sold is ambiguous.
• D) Price fell and quantity sold rise.

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