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

question 17

Multiple Choice

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

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

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