All Cereal Producers Have Decided to Add a New Ingredient,the

question 140

Multiple Choice

All cereal producers have decided to add a new ingredient,the "crunch enhancer," to cereals.Crunch enhancer keeps cereals crisper longer in milk and,as a result,consumers decide they like cereal more than before.What happens to the supply and demand curves for cereal now that it costs more to produce and consumers like it better?

• A)The supply and demand curves both shift rightward.
• B)The supply curve shifts rightward and the demand curve remains unchanged.
• C)The supply curve shifts leftward and the demand curve shifts rightward.
• D)The supply curve shifts leftward and the demand curve remains unchanged.
• E)Neither curve changes but a movement occurs up along the demand curve and a movement occurs up along the supply curve.

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Definitions:

Economic Factors

Elements that influence the economic performance of an entity, such as inflation rates, employment levels, and GDP growth.

Parental Behavior

The actions and strategies parents use in raising their children, which can affect the children's psychological and emotional development.

Family Structure

The composition and organization of a family unit, including the relationships and roles of its members.

Punitively

In a manner that involves punishment or penalization, particularly with the aim of correcting or deterring undesirable behavior.