A sudden massive reduction in the availability of chocolate will likely cause the price of chocolate to ________, which will ________ the quantity of chocolate demanded by consumers.
A) increase; increase
B) increase; decrease
C) decrease; increase
D) decrease; decrease

Question

Quizplus · Accepted Answer

According to the law of supply and demand, a decrease in supply (in this case, a sudden massive reduction in the availability of chocolate) typically leads to an increase in price. As prices increase, the quantity of chocolate demanded by consumers generally decreases, because consumers are either unwilling or unable to pay the higher prices.

A Sudden Massive Reduction in the Availability of Chocolate Will