Researchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus? Select one: a. they both decrease b. the equilibrium market price increases, and producer surplus decreases c. they both increase d. the equilibrium market price decreases, and producer surplus increases

Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter7: Consumers, Producers, And The Efficiency Of Markets
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Researchers find that drinking beer has positive health effects. What impact will this have on the price of beer and producer surplus?
Select one:
a. they both decrease
b. the equilibrium market price increases, and producer surplus decreases
c. they both increase
d. the equilibrium market price decreases, and producer surplus increases
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