Author Question: There has recently been an increase in the price of dairy products used in the production of ice ... (Read 106 times)

CORALGRILL2014 · **on:** Jun 29, 2018

There has recently been an increase in the price of dairy products used in the production of ice cream. High temperatures have also induced people to consume more ice cream.

In the market for ice cream, the effects these changes will have on equilibrium price and quantity are A) price will increase, and quantity will decrease.
B) price will increase, and the effect on quantity is indeterminate.
C) price will decrease, and quantity will increase.
D) price will decrease, and the effect on quantity is indeterminate.

Question 2

The saying that You cannot have your cake and eat it too illustrates the economic concept of

A) a positive statement.
B) a normative statement.
C) physical capital.
D) opportunity cost.