All Shredded Wheat Producers Have Decided to Add a New

question 392

Multiple Choice

All shredded wheat producers have decided to add a new ingredient to shredded wheat, the "crunch enhancer." 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 is 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 doesn't shift.
• C) The supply curve shifts leftward and the demand curve shifts rightward.
• D) The supply curve shifts leftward and the demand curve doesn't shift.

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Definitions:

Mania

A mental health condition characterized by periods of great excitement, euphoria, delusions, and overactivity.

Pessimistic Explanatory

A cognitive style where individuals tend to attribute negative events to stable, internal, and global causes, expecting future failures.

Global

Relating to or encompassing the whole world; worldwide in scope or application.

Stable

Refers to something that is firm, steady, and not likely to move or change, often used in the context of conditions or situations.