All Shredded Wheat Producers Have Decided to Add a New

question 57

Multiple Choice

All shredded wheat producers have decided to add a new ingredient, the "crunch enhancer" to shredded wheat. Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat 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:

Self-disclosure

The act of revealing personal, sensitive, or confidential information about oneself to others, often to foster trust or intimacy in relationships.

Formal Power

Authority derived from a person's position or role within an organization, granting them certain rights or privileges.

Active Listening

involves fully concentrating, understanding, responding, and remembering what is being said in a conversation.

Understood

Generally recognized or comprehended by people.