Answer: The correct answer is "d) The supply of bubble tea will decrease.".
Explanation: If everything else remains constant: An increase in the price of tapioca flour causes producers a higher cost, therefore this higher production cost will cause a decrease in supply.
Answer:
The given case relates to the movie Enron. In the movie, Jeffrey Skilling engineered transactions and falsely boosted stock values, allowing various stakeholders to earn higher returns at first. Arthur Anderson, the corporation's auditor, was involved in the investment fraud. Thus, initially to increase the share price the defaulters boosted their earnings.
