The market for chewing gum is competitive with a current price of 50 cents per pack and a quantity of 100,000 packs per day.Which event would lead to a new equilibrium price of 75 cents and a new equilibrium quantity of 125,000?

Question

Quizplus · Accepted Answer

An increase in the price of other kinds of candy would make chewing gum relatively cheaper, increasing its demand. This would shift the demand curve to the right, leading to a higher equilibrium price and quantity.

The Market for Chewing Gum Is Competitive with a Current