Let D = Demand, S = Supply, P = Equilibrium

question 274

Multiple Choice

Let D = demand, S = supply, P = equilibrium price, Q= equilibrium quantity. What happens in the market for walnuts if the Centers for Disease Control and Prevention announces that consuming a half cup of walnuts each week helps to lower bad levels of cholesterol?

• A) D increases, S no change, P and Q increase
• B) S increases, D no change, P decreases, Q increases
• C) D and S increase, P and Q decrease
• D) D no change, S increases, P decreases, Q decreases

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Definitions:

Good Faith

Acting with honesty and integrity without the intention of deceiving or defrauding others, often in contractual or negotiation contexts.

UCC

The Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Breach

The violation or non-fulfillment of a legal agreement, duty, or contract.

Identified Goods

Goods that are designated for a specific sale or contract, making them distinguishable from the seller's or manufacturer's other goods.