Suppose that the price of lettuce used to produce tacos increases.This change means that the equilibrium price of a taco ________ and the equilibrium quantity ________.

Question

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When the price of lettuce, an ingredient in tacos, increases, the cost of producing tacos also increases. This leads to a decrease in supply, causing the equilibrium price of tacos to rise (as they become more expensive to make) and the equilibrium quantity to decrease (as fewer tacos are produced and sold at the higher price).

Suppose That the Price of Lettuce Used to Produce Tacos