Answer: D. The equilibrium quantity would rise, while the effect on equilibrium price would be uncertain.
Explanation: The quantity of latte produced would escalate as the newly introduced machine decreases labor needs and enhances efficiency. Consequently, larger quantities of lattes will be generated in shorter durations. Similar effects would occur if it is found that the coffee used in making lattes prevents heart attacks.
In both scenarios, the quantity at equilibrium grows. However, the equilibrium price's impact is less clear, as the revelation that coffee helps prevent heart conditions could lead to higher latte prices since suppliers would want to benefit from this knowledge, whereas the introduction of machines may cause prices to drop because of increased production scale.
