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:

American Political History

The study and analysis of political events, ideas, movements, and leaders throughout the history of the United States.

Kansas-Nebraska Act

An 1854 U.S. law that created the territories of Kansas and Nebraska, leaving the decision of slavery to popular sovereignty, which intensified the pre-Civil War sectional conflict.

Whig Party

A political party in the United States that was active between the 1830s and the 1850s, opposing the policies of Andrew Jackson and advocating for federal government support of a more diversified economy.

Republican Party

One of the two major contemporary political parties in the United States, traditionally supporting pro-business, conservative, and right-leaning policies.