Suppose a new study highlights the health benefits of eating bacon. At the same time, suppose the cost of producing bacon falls. Given these changes, you should expect to see:
A) a decrease in the equilibrium price of bacon, but it's hard to say what will happen to the equilibrium quantity.
B) an increase in the equilibrium quantity of bacon, but it's hard to say what will happen to the equilibrium price.
C) an increase in both the equilibrium price and quantity of bacon.
D) an increase in the equilibrium price of bacon, but it's hard to say what will happen to the equilibrium quantity.
Correct Answer:
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