A news story reveals that grapefruit has widespread health benefits. At the same time, a tariff is placed on imported grapefruit. If it is not known whether the impact of these changes will affect supply or demand more, what happens to equilibrium price and quantity in the market for grapefruit?
A) Price increases, and quantity increases.
B) Price increases; we cannot say what happens to quantity.
C) Price decreases; we cannot say what happens to quantity.
D) We cannot say what happens to price; quantity increases.
Correct Answer:
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