Question

Chocolate has just been found to increase your expected life span by 5 years if you eat it every day. In the market for chocolate, this information will lead to an increase in price and a decrease in quantity. an increase in price and an increase in quantity. a decrease in price and an increase in quantity. a decrease in price and a decrease in quantity.

Answer 1

An increase in price and an increase in quantity.

Step-by-step explanation:

The fact that chocolate has been found to increase one's expected life span means that the demand of consumer for chocolate will increase.

This increase will raise the price of chocolate. The price rise will prompt firms to produce more chocolate, raising the quantity (the offer) of chocolate.

So a finding like this will increase both the price and the quantity in the market for chocolate.