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How will equilibrium price and quantity for George’s Gorgeous Gumballs be affected if the price of...

How will equilibrium price and quantity for George’s Gorgeous Gumballs be affected if the price of sugar rises and at the same time a new study finding that children who chew gumballs have twice as many cavities as those who do not is published?

1)

 The equilibrium price will rise and equilibrium quantity will rise.

2)

 Equilibrium price is ambiguous and equilibrium quantity will fall.

3)

 Equilibrium quantity is ambiguous and equilibrium price will rise.

4)

 Equilibrium price will fall and equilibrium quantity will fall.
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