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

question 45

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 equal to 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 price will decrease and the equilibrium quantity will not change
• D)The equilibrium price will decrease and the equilibrium quantity will increase.

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Definitions:

Adipose Tissue

A type of body tissue containing stored fat that serves as a source of energy, insulation, and cushioning for bodily organs.

Lipids

A group of naturally occurring molecules that include fats, waxes, sterols, and fat-soluble vitamins, among others, serving important roles in energy storage and cell structure.

Skeletal Muscles

Voluntary muscles attached to the skeleton, responsible for movement and maintaining posture.

Dense Regular Connective Tissue

A type of connective tissue with tightly packed collagen fibers that run in parallel, providing great strength in one direction, such as tendons and ligaments.