Business
Business, 06.03.2020 21:30, 2022maldonadoleonel

An add in the newspaper claims that the price of milk will increase next week. At the same time, a new and improved pasteurization process makes milk production more efficient. Given these two effects, what can we say about the current equilibrium price and quantity of milk? a. Equilibrium quantity will increase; the effect on price is ambiguous. b. Equilibrium price will increase; the effect on quantity is ambiguous. c. Equilibrium price will decrease; the effect on quantity is ambiguous. d. Equilibrium quantity will decrease, equilibrium price will increase.

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An add in the newspaper claims that the price of milk will increase next week. At the same time, a n...

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