Suppose That Consumers Learn That Eating Apples Can Significantly Reduce

question 93

Essay

Suppose that consumers learn that eating apples can significantly reduce a person's chance of getting cancer.Comment on what the apple producers would notice in terms of their marginal cost verses marginal revenue.In the short-run,what would you expect them to do and what would happen to the market price and quantity produced.In the long-run what do you expect would happen to the market price and quantity?

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Definitions:

Neural Impulse

An electrical signal that travels along a neuron, enabling neurons to communicate with each other and with other parts of the body.

Threshold

The minimum level of stimulus intensity required to trigger a perceptible response or reaction.

Minimum Level

The lowest degree or amount of something that is considered acceptable or sufficient.

Antagonist

A molecule that inhibits or blocks a neurotransmitter’s action.