The Market for Chewing Gum Is in Equilibrium with a Current

question 122

Multiple Choice

The market for chewing gum is in equilibrium with a current price of 50 cents per pack and a quantity of 100,000 packs per day. Which of the following events is most likely to result in a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000 packs, the supply curve for chewing gums remaining unchanged?

• A) an increase in the price of other kinds of candy
• B) an increase in the prices of the ingredients used to make chewing gum
• C) an agreement among workers in the chewing gum industry to work for lower wages
• D) a decrease in the number of young people in the population
• E) a decrease in the income of the consumers of chewing gum

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