Asked by Reyna Nava Sanchez on Jul 21, 2024
Verified
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.
Equilibrium Price
Equilibrium price is the price at which the quantity of goods demanded by consumers matches the quantity of goods supplied by producers, resulting in a market balance where there is neither excess supply nor excess demand.
Chocolate Consumption
Refers to the amount and frequency at which chocolate is consumed by individuals or populations, indicating preferences and economic spending on confectionery.
- Acquire knowledge on how supply contributes to market equilibrium.
- Understand the effects of changes in supply on market results.
Verified Answer
CH
Christopher HuangJul 24, 2024
Final Answer :
A
Explanation :
The discovery that chocolate consumption increases IQ would likely lead to an increase in demand for chocolate. As demand increases, both the equilibrium price and quantity of chocolate would rise, reflecting higher consumer willingness to pay and greater sales volume.
Learning Objectives
- Acquire knowledge on how supply contributes to market equilibrium.
- Understand the effects of changes in supply on market results.