What Would Happen to the Equilibrium Price and Quantity of Lattés

question 194

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 them?

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

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Definitions:

Binocular Disparity

The difference in the visual images that each eye perceives because of the eyes’ horizontal separation; the basis of stereoscopic vision.

Convergence

A term that refers to the coming together of two or more things; in a physiological context, it describes the inward movement of the eyes toward each other when focusing on a close object.

Closure

The psychological tendency to seek a coherent and logical ending to an open issue or incomplete task.

Interposition

A visual cue for depth perception that occurs when one object partly blocks another; it can provide information about the relative positions and distances of objects in space.