Let D = Demand, S = Supply, P = Equilibrium

question 140

Multiple Choice

Let D = demand, S = supply, P = equilibrium price, Q = equilibrium quantity. What happens in the market for walnuts if the Centre for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower bad levels of cholesterol?

• A)D increases, S no change, P and Q increase.
• B)D no change, S increases, P decreases, Q increases.
• C)D and S increase, P and Q decrease.
• D)D no change, S increases, P decreases, Q decreases.

---

Definitions:

Novation

A legal process where an old debt, obligation, or contract is replaced by a new one, effectively extinguishing the original agreement and substituting it with a new party or terms.

Obligor

An Obligor is the party in a contractual agreement who is bound to provide a specified performance to another party, the obligee.

Obligee

The party in a contractual agreement who is owed a duty or obligation by another party, the obligor.

Third-Party Donee Beneficiary

A person who benefits from a contract between two other parties, although they are not one of the contract's signatories.