Mars bars and Snickers bars are close substitutes. Let’s assume we can analyse the markets for these products using the
Posted: Fri Jul 01, 2022 8:19 am
Mars bars and Snickers bars are close substitutes. Let’s assumewe can analyse the markets for these products using thedemand-supply cross model. What would happen to the equilibriumprice and quantity of Mars bars if the following events occurredsimultaneously: (i) new management strategies are implemented inMars bar factories which increase productivity and (ii) it isdiscovered that the peanuts in Snickers bars causes braindamage.
The quantity will tend to rise but the price could rise orfall
The quantity and price rotate around a fixed point in space.
The quantity will tend to rise and the price will tend to remainunchanged
The quantity could rise or fall and the price could rise orfall
The quantity will tend to rise and the price will tend tofall
The quantity will tend to fall and the price will tend torise
The quantity will tend to rise but the price could rise orfall
The quantity and price rotate around a fixed point in space.
The quantity will tend to rise and the price will tend to remainunchanged
The quantity could rise or fall and the price could rise orfall
The quantity will tend to rise and the price will tend tofall
The quantity will tend to fall and the price will tend torise