If Consumers View Cappuccinos and Lattés as Substitutes,what Would Happen

question 44

Multiple Choice

If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises?

• A)Both the equilibrium price and quantity would increase.
• B)Both the equilibrium price and quantity would decrease.
• C)The equilibrium price would increase,and the equilibrium quantity would decrease.
• D)The equilibrium price would decrease,and the equilibrium quantity would increase.

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Definitions:

Vagus Nerve

A cranial nerve that innervates major organs, including the heart and digestive tract, playing a crucial role in autonomic functions like heart rate and digestion.

Glossopharyngeal Nerve

The ninth cranial nerve, which is responsible for taste and other functions in the tongue and throat.

Spinal Reflex Arc

A neural pathway that mediates a reflex action involving the spinal cord, consisting of at least one sensory neuron and one motor neuron.

Sensory Neuron

A type of neuron that transmits signals from sensory receptors towards the central nervous system, allowing it to perceive stimuli.