Final answer:
Greater government oversight on the production of safe chicken meat would likely increase both the price and quantity of McDonald's McChicken Sandwich if it affects Chick-fil-A's quality and demand shifts to the less tasty option. so, option C is the correct answer.
Step-by-step explanation:
The event that would cause both the equilibrium price and equilibrium quantity of the less tasty McDonald's McChicken Sandwich to increase over the more tasty Chick-fil-A Chicken Sandwich is (c). Greater government oversight on the production of safe chicken meat used by fast food restaurants. This would likely lead to an increase in production costs for both companies, shifting the supply curves to the left. However, because quality is a significant differentiator, if the oversight affects Chick-fil-A's perceived quality, consumers might turn to McDonald's sandwiches despite being considered less tasty. This change in consumer behavior could increase both the equilibrium price and quantity of the McDonald's sandwich as demand shifts towards it.
In contrast,
(a) An increase in consumer income
would more likely lead to an increase in demand for the more tasty Chick-fil-A sandwich, as consumers with higher income might prefer quality over price.
(b) A decrease in consumer income
could potentially lead to an increase in demand for the cheaper alternative, but it is not certain if it would increase both price and quantity. Option
(d) Less government oversight
might decrease production costs and could increase the supply of chicken meat, which could lead to a decrease in equilibrium prices for the sandwiches and potentially mixed effects on quantities.
It's important to understand that these effects are subject to the basic model of demand and supply, where normally there's an inverse relationship between price and quantity demanded; however, changes in other factors can lead to atypical demand behaviors.