Last year, 1000 gallons of almond milk (a non-dairy product) were sold at a price of $10. Yet, this year, a bad harvest in California has wiped out a significant part of the almond harvest. At the same time, a larger number of people are looking to shift away from dairy products towards non- dairy alternatives. Because of these two changes, the equilibrium price will increase and change in the equilibrium quantity is unambiguous. O the equilibrium price will decrease but change in the equilibrium quantity is ambiguous. the change in the equilibrium price is ambiguous, but the equilibrium quantity will increase. O the equilibrium price will increase but change in the equilibrium quantity is ambiguous.

Last year, 1000 gallons of almond milk (a non-dairy product) were sold at a price of $10. Yet, this year, a bad harvest in California has wiped out a significant part of the almond harvest. At the same time, a larger number of people are looking to shift away from dairy products towards non- dairy alternatives. Because of these two changes, the equilibrium price will increase and change in the equilibrium quantity is unambiguous. O the equilibrium price will decrease but change in the equilibrium quantity is ambiguous. the change in the equilibrium price is ambiguous, but the equilibrium quantity will increase. O the equilibrium price will increase but change in the equilibrium quantity is ambiguous.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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