If the Cost to Produce Frozen Chicken Nuggets Decreases at the Same

question 22

Multiple Choice

If the cost to produce frozen chicken nuggets decreases at the same time as consumer tastes shift away from frozen chicken nuggets and the shift in demand is greater than the shift in supply, which of the following is true?

• A)Both the equilibrium quantity and price will decrease.
• B)Both the equilibrium quantity and price will increase.
• C)The equilibrium quantity will decrease and the equilibrium price will increase.
• D)The equilibrium price will decrease and the equilibrium quantity will not change.

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Definitions:

Tracked

Monitored or followed the progress or movements of something or someone.

Hawthorne Effect

A phenomenon in which individuals modify or improve an aspect of their behavior in response to their awareness of being observed.

Systems Level

A perspective focusing on understanding how individual parts interact within the whole system.

Organizational

Relating to an organization or the structured arrangement of people and resources to achieve a specific purpose.