Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:
A. price of high-fiber foods will rise.
B. quantity demanded of high-fiber foods will fall.
C. demand for high-fiber foods will decrease.
D. supply of high-fiber foods will increase.
Answer: C
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State bank notes usually had a face value that was ______ their market value, while the notes of the First Bank of the U.S. usually had a face value that was ______ their market value
a. greater than; less than b. less than; greater than c. equal to; less than d. greater than; equal to
Which of the following properly describes the interest-rate effect?
a. A higher price level leads to higher money demand; higher money demand leads to higher interest rates; a higher interest rate increases the quantity of goods and services demanded. b. A higher price level leads to higher money demand; higher money demand leads to lower interest rates; a higher interest rate reduces the quantity of goods and services demanded. c. A lower price level leads to lower money demand; lower money demand leads to lower interest rates; a lower interest rate reduces the quantity of goods and services demanded. d. A lower price level leads to lower money demand; lower money demand leads to lower interest rates; a lower interest rate increases the quantity of goods and services demanded.
In a perfectly competitive market, economic forces are controlled by government policy makers.
Answer the following statement true (T) or false (F)
If the multiplier effect did not exist, the aggregate demand curve would:
A. be horizontal. B. be flatter. C. be steeper. D. not exist.