In January, 2,500 quarts of ice cream are sold in Boston at $2 per quart. In February, 3,000 quarts are sold at $2.50 a quart. This change in the price and quantity sold of ice cream may have been caused by:
A)a reduction in wages in the Boston area.
B)the introduction of labor-saving, automated ice cream packing machinery.
C)the release of a medical study showing that ice cream consumption improves mental health.
D)the decision by Boston ice cream sellers to eliminate discount coupons.

Question

In January, 2,500 quarts of ice cream are sold in Boston at $2 per quart. In February, 3,000 quarts are sold at $2.50 a quart. This change in the price and quantity sold of ice cream may have been caused by:
A)​a reduction in wages in the Boston area.
B)​the introduction of labor-saving, automated ice cream packing machinery.
C)​the release of a medical study showing that ice cream consumption improves mental health.
D)​the decision by Boston ice cream sellers to eliminate discount coupons.

Quizplus · Accepted Answer

The increase in both price and quantity sold can be attributed to an increase in demand, which could be caused by a positive change in consumer preferences, such as the release of a medical study showing health benefits of consuming ice cream.

In January, 2,500 Quarts of Ice Cream Are Sold in Boston