Question

If consumers view cappuccinos and lattés as substitutes, what would happen to the equilibrium price and quantity of lattés if the price of cappuccinos rises? Group of answer choices a.The equilibrium price would increase, and the equilibrium quantity would decrease. b.Both the equilibrium price and quantity would increase. c.Both the equilibrium price and quantity would decrease. d.The equilibrium price would decrease, and the equilibrium quantity would increase.

Answer 1

Answer:

B. Both the equilibrium price and quantity would increase.