Asked by Irene Zazueta on Mar 10, 2024
Verified
Suppose the TV news programs report that oat bran can lower one's cholesterol.As a result,the equilibrium price of oats would _____,and the equilibrium quantity of oats would _____.
A) increase;increase
B) decrease;not change
C) decrease;decrease
D) increase;decrease
E) decrease;increase
Equilibrium Price
The price at which the quantity of a product demanded by consumers and the quantity supplied by producers are equal.
Oat Bran
The outer layer of the oat grain, rich in dietary fiber and nutrients, often consumed for its health benefits, such as lowering cholesterol.
Cholesterol
A type of fat found in the blood that is necessary for building cells and producing certain hormones, but high levels can increase the risk of heart disease.
- Appreciate the role that consumer expectations and preferences play in influencing market demand.
Verified Answer
AF
Angela FulkersonMar 10, 2024
Final Answer :
A
Explanation :
The news would likely increase demand for oats as people seek the health benefits of lowering cholesterol. This increased demand shifts the demand curve to the right, leading to a higher equilibrium price and a higher equilibrium quantity of oats.
Learning Objectives
- Appreciate the role that consumer expectations and preferences play in influencing market demand.