All Shredded Wheat Producers Have Decided to Add a New

question 57

Multiple Choice

All shredded wheat producers have decided to add a new ingredient, the "crunch enhancer" to shredded wheat. Crunch enhancer keeps cereals crisper longer in milk and, as a result, consumers decide they like shredded wheat more than before. What happens to the supply and demand curves for shredded wheat now that it costs more to produce and consumers like it better?

• A)The supply and demand curves both shift rightward.
• B)The supply curve shifts rightward and the demand curve remains unchanged.
• C)The supply curve shifts leftward and the demand curve shifts rightward.
• D)The supply curve shifts leftward and the demand curve remains unchanged.
• E)Neither curve changes but a movement occurs up along the demand curve and a movement occurs up along the supply curve.

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Definitions:

Sensory Interaction

The principle that different senses can influence and interact with each other, affecting how we perceive the world.

Aroma

A distinctive, often pleasant smell or fragrance.

Kinesthesis

The sense that detects body position, movement, and balance.

Middle Ear

The middle ear is the portion of the ear internal to the eardrum, and external to the oval window of the inner ear that contains three bones known as the ossicles, involved in transmitting sound from the outer ear to the inner ear.