The equilibrium price of teddy bears is $5.A study comes out that says owning a teddy bear causes one to earn a lower salary.If all other factors are held constant,which of the following scenarios could happen?
A) The price of teddy bears increases to $7 because of a supply shift.
B) The price of teddy bears decreases to $4 because of a supply shift.
C) The price of teddy bears decreases to $4 because of a demand shift.
D) The price of teddy bears increases to $7 because of a demand shift.
E) The price of teddy bears increases to $7 because of both a demand shift and a supply shift.
Correct Answer:
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