Suppose It Was Discovered That the Consistent Consumption of Chocolate

question 197

Multiple Choice

Suppose it was discovered that the consistent consumption of chocolate raised IQ by ten points.As a result,

• A)both equilibrium price and quantity for chocolate will rise.
• B)both equilibrium price and quantity for chocolate will fall.
• C)equilibrium price will rise and equilibrium quantity will fall for chocolate.
• D)equilibrium price will fall and equilibrium quantity will rise for chocolate.

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services.

Leather Jackets

Garments made from the skin of animals, primarily cows, processed and designed for wear primarily as outerwear.

Utility Function

A mathematical representation of a consumer's preference ranking for bundles of goods or services, used to predict economic behavior.

Curds

The solid parts of milk that coagulate when milk is soured or treated with enzymes, used in cheese-making.