Suppose That Consumption of Oat Bran Is Found to Reduce

question 173

Multiple Choice

Suppose that consumption of oat bran is found to reduce cholesterol and improve health.The result is that:

• A) the demand for oat bran decreases.
• B) the demand for oat bran increases.
• C) the supply of oat bran increases.
• D) Both A and C are correct.

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Definitions:

Marginal Utility

The further benefit or pleasure derived by consuming an additional unit of a given good or service.

Weekly Income

The total amount of money earned or received by an individual or household over the course of a week.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given budget.

Budget Constraint

A budget constraint represents the combinations of goods and services that a consumer can purchase given their income and the prices of those goods and services.