All Grapefruit Juice Producers Have Decided to Blend Tangerine Juice

question 94

Multiple Choice

All grapefruit juice producers have decided to blend tangerine juice with grapefruit juice.This blend results in a higher cost of production,but studies show that consumers prefer the taste of the blend to straight grapefruit juice.What will happen to the equilibrium price and quantity of grapefruit juice?

• A)The equilibrium price falls and the equilibrium quantity increases.
• B)The equilibrium quantity increases but the effect on the equilibrium price is uncertain.
• C)The equilibrium price rises but the effect on the equilibrium quantity is uncertain.
• D)The equilibrium price rises and the equilibrium quantity increases.
• E)The equilibrium price rises and the equilibrium quantity remains unchanged.

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Definitions:

Breakthrough

Refers to a significant and sudden advance or discovery that opens up new possibilities in a field of study, technology, or industry.

Continuous

An ongoing, uninterrupted process, action, or flow that does not have a clear beginning or end.

Product

Any item or service that is created through a process and is offered to the market to satisfy a need or want.

Feasibility Determination

The process of assessing the practicality and viability of a proposed project or system.