Brown sugar is an ingredient used to make churro waffles.
What happens to the price and quantity of churro waffles if the price of brown sugar decreases?

Choose 1 answer:
(A) Price increases; quantity increases.
(B) Price increases; quantity decreases.
(c) Price decreases; quantity increases.
(D) Price decreases; quantity decreases.
(E) Price increases; quantity does not change.

Question

Brown sugar is an ingredient used to make churro waffles.
What happens to the price and quantity of churro waffles if the price of brown sugar decreases?

Choose 1 answer:
(A) Price increases; quantity increases.
(B) Price increases; quantity decreases.
(c) Price decreases; quantity increases.
(D) Price decreases; quantity decreases.
(E) Price increases; quantity does not change.

Accepted Answer

∻Solution∻ ‖ a ⋮ Input Cost and Supply: When the price of an input (brown sugar) decreases, the cost of production for churro waffles decreases. ‖ ‖ b ⋮ Supply Curve Shift: A decrease in production costs shifts the supply curve to the right, indicating an increase in supply. ‖ ‖ c ⋮ Equilibrium Price and Quantity: With an increased supply, the equilibrium price of churro waffles decreases, and the equilibrium quantity increases. ‖ ∻Answer∻ ⚹ (C) Price decreases; quantity increases. ⚹ ∻Key Concept∻ ⚹ Input Cost and Supply Curve ⚹ ∻Explanation∻ ⚹ A decrease in the price of brown sugar reduces production costs for churro waffles, leading to an increase in supply. This shifts the supply curve to the right, resulting in a lower equilibrium price and a higher equilibrium quantity. ⚹◊How would a decrease in the price of brown sugar affect the supply curve for churro waffles?⍭ Generate me a similar question◊

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