If scientists discover that steamed milk, which is used to make lattés, prevents heart attacks, what would happen to the equilibrium price and quantity of lattés?
A)Both the equilibrium price and quantity would increase.
B)Both the equilibrium price and quantity would decrease.
C)The equilibrium price would increase, and the equilibrium quantity would decrease.
D)The equilibrium price would decrease, and the equilibrium quantity would increase.

Question

Quizplus · Accepted Answer

The discovery that steamed milk prevents heart attacks would likely increase the demand for lattés, as people seek the health benefits. This increased demand would push the equilibrium price and quantity of lattés higher.

If Scientists Discover That Steamed Milk, Which Is Used to Make