A farmer can plant either wheat or tobacco. Over time, consumers realise the adverse health effects of smoking and stop smoking. What will then happen to the equilibrium price and equilibrium quantity of wheat? A. Equilibrium quantity will increase and equilibrium price will fall. B. Equilibrium quantity will increase and equilibrium price will rise. C. Equilibrium quantity will decrease and equilibrium price will fall. D. Equilibrium quantity will decrease and equilibrium price will rise.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter4: Demand, Supply, And Market Equilibrium
Section: Chapter Questions
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A farmer can plant either wheat or tobacco. Over time, consumers realise the adverse health effects of smoking and stop smoking. What will then happen to the equilibrium price and equilibrium quantity of wheat?

A. Equilibrium quantity will increase and equilibrium price will fall.

B. Equilibrium quantity will increase and equilibrium price will rise.

C. Equilibrium quantity will decrease and equilibrium price will fall.

D. Equilibrium quantity will decrease and equilibrium price will rise.

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