Say the Market for Cereal Is Initially in Equilibrium When

question 63

Multiple Choice

Say the market for cereal is initially in equilibrium when all the major newspaper published the findings from study that say that eating 2 cups of cereal each day significantly reduces the risk for a hear attack. Other things equal, the publication of this findings will:

• A)decrease the market quantity of cereal
• B)decrease the market price of cereal.
• C)increase the supply of cereal.
• D)increase the quantity supply of cereal.

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Definitions:

Discount

The reduction applied to the nominal price of goods, services, or securities, often to accelerate sales or investment.

Common Stock

A type of security that represents ownership in a corporation, entitling the holder to vote at shareholder meetings and to receive dividends.

Noncompensatory

Refers to plans or benefits that do not provide compensation or remuneration, typically used in contexts related to employee benefit plans that do not compensate for services performed.

Stock Option Plan

A program established by a company that grants employees the right to purchase the company's stock at a predetermined price after a certain period of time.