If Consumers View Cappuccinos and Lattés as Substitutes,what Would Happen

question 141

Multiple Choice

If consumers view cappuccinos and lattés as substitutes,what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos falls?

• 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:

Pepsin

Enzyme secreted by gastric glands that digests proteins to peptides.

Hydrochloric Acid

A strong, corrosive acid found in the gastric juices of the stomach that aids in digestion and kills microbes.

Smooth Muscle

Nonstriated, involuntary muscle found in the walls of internal organs.

Binge-Eating Disorder

Binge-eating disorder is characterized by recurrent episodes of eating large quantities of food, a lack of control during the binges, and feelings of shame or guilt afterwards.