If the market for alcoholic beverages is in equilibrium, and then the drinking a

Question

If the market for alcoholic beverages is in equilibrium, and then the drinking age is reduced from 21 to 18, what will happen to the equilibrium price and quantity of alcoholic beverages. A) Both equilibrium price and quantity will rise B) Both equilibrium price and quantity will decline C) equilibrium price will rise but equilibrium quantity will decline D) Equilibrium price will decline but equilibrium quantity will rise E) The market will not be effected, equilibrium price and quantity will remain the same

Explanation / Answer

C) equilibrium price will rise but equilibrium quantity will decline

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