Consider the Market for Burritos, Which Is Currently in Equilibrium

question 122

Multiple Choice

Consider the market for burritos, which is currently in equilibrium. Now, suppose that two events happen simultaneously: (1) the price of tortillas, used in the production of burritos, increases and (2) a new advertising campaign increases the popularity of burritos among consumers. What effect might these events have on the market for burritos?Supply will increase.Demand will increase.The equilibrium price will increase.The equilibrium quantity will decrease.

• A) I, II, and III only
• B) I and II only
• C) I and IV only
• D) II and III only

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