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:

Confidence Level

A statistical measure that quantifies the degree of certainty or uncertainty in sampling or testing results.

Interests and Values

Personal preferences and principles that guide individuals' choices, behaviors, and attitudes towards various aspects of life.

Inexpensive

Referring to something that does not cost a lot of money; affordable.

Online

Pertaining to activities, interactions, or services that are conducted or available through the internet.