What Would Happen to the Equilibrium Price and Quantity of Lattés

question 58

Multiple Choice

What would happen to the equilibrium price and quantity of lattés if the cost to produce steamed milk,which is used to make lattés,increased,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:

Tactics

Specific actions, strategies, or maneuvers used to achieve a particular objective, often within a larger plan or strategy.

Effectiveness

The degree to which something is successful in producing a desired result or outcome, often used to evaluate strategies, tools, policies, or processes.

First Continental Congress

The initial meeting of delegates from twelve of the thirteen colonies in 1774, convened to respond to the British Coercive Acts.

Declaration of Rights

A document outlining the fundamental rights and freedoms that are guaranteed to a person or recognized by a legal system, such as the United States Bill of Rights.