Related to the Economics in Practice on Page 318: a Company

question 103

Multiple Choice

Related to the Economics in Practice on page 318: A company selling iced tea discovers that as sugar is added to tea, customers' opinions of the taste of the tea rises for the first few grams of sugar and then drops. Even so, the company chooses not to add the amount sugar that would result in the best-tasting tea. Which of the following would explain why adding less sugar could be a wise decision?

• A) The price of sugar added to tea is much less significant than the price of other ingredients, such as tea leaves.
• B) Manufacturers of tea are required to clearly indicate the amount of sugar in their products.
• C) Teas with less sugar are more likely to appeal to health-conscious consumers.
• D) Many products in the cold drink market are sold with substitutes for sugar, such as high fructose corn syrup.

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Definitions:

Blood Sugar

The concentration of glucose present in the blood, crucial for energy production in the body.

Placebo

is a substance or treatment with no therapeutic effect given to a participant in a study as a control to test the efficacy of another treatment, or used to elicit a psychological benefit through the belief in the treatment.

Metronome

A device used by musicians that marks time at a selected rate by giving a regular tick sound.

Meat Powder

A substance made from dried and pulverized meat, used as nutritional supplement or in cooking.