Suppose the market for "soda X" is in equilibrium. If the FDA announced today that this soda has been proven to cause a fatal disease, what would be most likely to happen to the equilibrium price and equilibrium quantity of soda X?
A. Price increases and quantity increases
B. Price decreases and quantity increases
C. Price increases and quantity increases
D. Price decreases and quantity decreases
Answer: D
Economics
You might also like to view...
In 1975 the Swiss National Bank announced a policy of targeting ________
A) the level of income B) interest rates C) rational expectations D) monetary aggregates
Economics
Which of the following was not illegal under the original Clayton Act?
a. Tying contracts. b. Interlocking directorates. c. Merger by purchase of assets with cash. d. All of these were illegal under the original Clayton Act.
Economics