What Would Happen to the Equilibrium Price and Quantity of Lattés

question 84

Multiple Choice

What would happen to the equilibrium price and quantity of lattés if coffee shops began using a machine that reduced the amount of labor necessary to produce steamed milk,which is used to make lattés,and scientists discovered that lattés cause heart attacks?

• A)Both the equilibrium price and quantity would increase.
• B)Both the equilibrium price and quantity would decrease.
• C)The equilibrium price would decrease,and the effect on equilibrium quantity would be ambiguous.
• D)The equilibrium quantity would decrease,and the effect on equilibrium price would be ambiguous.

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Definitions:

Labor

The process of childbirth, especially the period from the start of contractions to delivery.

Delivery

The process of transporting goods from one place to another or the act of giving birth to a baby.

Antiseptics

Substances that prevent the growth of disease-causing microorganisms, often used on living tissues to prevent infection.

Anesthesia

The practice of using drugs to prevent pain during surgery, which can result in loss of awareness or consciousness.