If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?
A) The equilibrium price rises and the equilibrium quantity increases.
B) The equilibrium price falls and the equilibrium quantity decreases.
C) The equilibrium price rises and the equilibrium quantity decreases.
D) The equilibrium price falls and the equilibrium quantity increases.
B
You might also like to view...
If this year's price level is 126 and last year's price level was 120, the inflation rate is ________
A) 0.95 percent a year B) 5 percent a year C) 6 percent a year D) 1.05 percent a year
The multiplier is calculated as the change in ________ divided by the change in ________
A) real GDP; induced spending B) nominal GDP; autonomous expenditure C) real GDP; autonomous expenditure D) autonomous expenditure; real GDP
The key explanation for the prevalence of waterway pollution is: a. the inclusion in decisions of all production costs associated with the use of waterways
b. that there are private costs but no costs to society associated with the use of waterways that are not costs to society. c. that waterways are not private property and can be used free of charge. d. that waterways are not of great value to society.
Economists Novy-Marx and Rauh contend that if New York wanted to adequately fund its pension systems for its public workers, it would have to put on
A. a one-time tax of nearly $390,000 per household. B. an annual tax of only $39 per household. C. an annual tax of nearly $39,000 per household. D. a one-time tax of nearly $39,000 per household.