You are a producer of candies. In the market for candies, two events happen
simultaneously: there is an increase in the price of sugar used to make your candies, and there are news headlines that promote the link between eating candies and increasing diabetes. Which of the following is a consequence?
A. There is a decrease in the price of candies and a decrease in the quantity of candies.
B. There is a decrease in the price of candies and an increase in the quantity of candies.
C. There is an increase in the price of candies and a decrease in the quantity of candies.
D. We know for sure the quantity will decrease, but we don't know what will happen to the price unless we know the size of the shifts.

Question

31-01-2022
Business

Answered

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You are a producer of candies. In the market for candies, two events happen
simultaneously: there is an increase in the price of sugar used to make your candies, and there are news headlines that promote the link between eating candies and increasing diabetes. Which of the following is a consequence?
A. There is a decrease in the price of candies and a decrease in the quantity of candies.
B. There is a decrease in the price of candies and an increase in the quantity of candies.
C. There is an increase in the price of candies and a decrease in the quantity of candies.
D. We know for sure the quantity will decrease, but we don't know what will happen to the price unless we know the size of the shifts.

Sagot :

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