What Would Happen to the Equilibrium Price and Quantity of Lattés

question 84

Multiple Choice

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk,which is used to make lattés,and scientists discovered that lattés cause heart attacks?

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

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Definitions:

LLC

A Limited Liability Company; a hybrid business structure that combines the personal asset protection of a corporation with the tax benefits of a partnership.

Distributions

The payment of assets from a fund or account to its shareholders or partners, such as dividends from a corporation or distributions from a partnership or LLC.

LLC Contracts

Legal agreements that are specifically related to or entered into by a Limited Liability Company (LLC).

ULPA

An acronym for "Uniform Limited Partnership Act," which is a statute that sets forth the legal rules and regulations governing limited partnerships in various jurisdictions.