Answer to Question #205856 in Microeconomics for Eddie

Question

There is an increase in the number of adverts highlighting the danger of consuming sugar. Which

of the following is likely to occur in the market for sugarless sweets, as a result of this?

a) An increase in both the equilibrium price and quantity traded.

b) A decrease in equilibrium price and an increase in equilibrium quantity traded.

c) A decrease in both the equilibrium price and quantity traded.

d) An increase in the equilibrium price and a decrease in the equilibrium quantity traded.

Answer 1

An increase in both the equilibrium price and quantity traded.