17. What would happen to the equilibrium price and quantity of lattés if coffee shops began using amachine that reduced the amount of labor necessary to produce steamed milk, which is used to makelattés, and scientists discovered that coffee prevents heart attacks?A. Both the equilibrium price and quantity would decrease.B. The equilibrium quantity would increase, and the effect on equilibrium price would beambiguous.C. The equilibrium price would increase, and the effect on equilibrium quantity would beambiguous.D. Both the equilibrium price and quantity would increase.
18. A likely example of substitute goods for most people would be
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19. In a competitive market, there are so few buyers and so few sellers that each has a significant impacton the market price.
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20. An increase in which of the following would shift the supply curve for gasoline to the right?
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Part 2: Please answer the following question. Show all the steps in detail.1.In class, we use the S-D graph to analyze markets for goods and services. We can also use the S-Dgraph to analyze the labor market. In the labor market, workers are the sellers while firms are thebuyers. The “good” that is sold in the market is labor. Thetable below shows the quantity demanded(number of workers willing to work) and quantity supplied (number of job vacancies) in the city ofProductionville.