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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Definitions:

Contradictory Attitudes

Holding conflicting or opposing views towards an object, person, or situation simultaneously.

Same Object

refers to an identical item or entity being considered or discussed, emphasizing the lack of difference or distinction between them.

Hedonic Purchases

Purchases made for pleasure and enjoyment rather than practical reasons.

Utilitarian Purchases

Buying goods or services based on their practical use and functionality rather than their aesthetic or emotional appeal.