2 Chapter 3 Name: Date: 1. An increase in the price of sugar (an ingredient for soft drinks) and an increased concern about tooth decay caused by the consumption of soft drinks will result in which of the following in the soft drink market? A) Both the equilibrium price and quantity will increase. B) Equilibrium quantity will decrease, but equilibrium price may decrease, increase, or stay the same. C) Both equilibrium price and equilibrium quantity will decrease. D) Equilibrium quantity will increase, but equilibrium price may decrease, increase, or stay the same. Use the following to answer questions 2-3: Figure: The Market for Candy Price Supply P P2 P3 Demand Q1 Q2 Q3 Q4 Q5 Quantity 2. (Figure: The Market for Candy) Look at the figure The Market for Candy. Equilibrium occurs at a price of , and the equilibrium quantity is equal to A) PI; Qs B) P2; Q3 C) P3; Q2 D) PI; 23 Page 1