Question

A 2014 study conducted by Yahoo! revealed that chocolate is the most popular flavor of ice cream in America. c. Suppose improvements in the processing and freezing of strawberries lowers the price of strawberry ice cream. Indicate the possible effects on demand, supply, or both, as well as on the equilibrium price and quantity of chocolate ice cream. The demand curve for chocolate ice cream shifts to the left. shifts to the right. does not shift. The supply curve for chocolate ice cream shifts to the right. does not shift. shifts to the left. The equilibrium price of chocolate ice cream could increase or decrease. increases. decreases. The equilibrium quantity of ice cream increases. could increase or decrease. decreases.

Answer 1

Step-by-step explanation:

The demand curve for chocolate ice cream : shifts to the left

The supply curve for chocolate ice cream : does not shift

The equilibrium price of chocolate ice cream : decreases

The equilibrium quantity of ice cream : decreases

The law of supply and demand is a principle of the economy which explains the ties between supply and demand and how this relationship affects goods and services ' prices. The idea of supply surpassing demand for a product or service means costs are central to economic policy. Prices tend to rise as demand exceeds supply.