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:

World's Leading

A term often used to describe a company, product, or service that is recognized as the most successful, advanced, or highest quality in its field on a global scale.

Trade Feedback Effect

A phenomenon where an increase in exports leads to an increase in national income and, consequently, an increase in imports.

Economic Flows

Refers to the movements of funds that reflect economic activity, including the flow of money within and between countries, such as trade, investment, and financial transactions.

Free Trade

International trade left to its natural course without tariffs, quotas, or other restrictions.