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:

ECG

A test that records the electrical activity of the heart to detect heart conditions.

ECGs

Electrocardiograms, a medical test that measures the electrical activity of the heart to identify abnormalities.

Atrioventricular Valves

Heart valves located between the atria and ventricles, enabling blood flow from the atria to the ventricles while preventing backflow.

Semilunar Valves

Valves located at the exit of both the left and right ventricles of the heart, which prevent backflow of blood into the ventricles.