Suppose That a New Study Is Released Stating That Consumption

question 207

Multiple Choice

Suppose that a new study is released stating that consumption of orange juice (a substitute for apple juice) reduces the risk of cancer,and a major freeze destroys half of the country's apple crop.What happens to the price and quantity of apple juice?

• A) The price of apple juice might rise or fall and the quantity of apple juice falls.
• B) The price of apple juice might rise or fall and the quantity of apple juice rises.
• C) The price of apple juice falls and the quantity of apple juice falls.
• D) The quantity of apple juice might rise or fall and the price of apple juice rises.

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Definitions:

Image Restoration Theory

A framework outlining strategies an individual or organization can use to repair their reputation following a crisis.

PR Professionals

Individuals skilled in managing and enhancing the public image and relationships of organizations or individuals.

Corporate Actions

Decisions taken by a company’s board of directors or management that impact the firm's equity or financial instruments, such as dividends, mergers, or stock splits.

PR Disaster

A situation where poor handling of public relations causes significant harm to a brand's or individual's reputation.