A decrease in the price of blueberries will decrease both the equilibrium price and quantity in the market for blueberry muffins.

Question

Quizplus · Accepted Answer

A decrease in the price of blueberries, which are an input in the production of blueberry muffins, would likely decrease the cost of producing blueberry muffins. This could lead to an increase in supply of blueberry muffins, potentially lowering the equilibrium price but increasing the equilibrium quantity of blueberry muffins in the market.

A Decrease in the Price of Blueberries Will Decrease Both