The Market for Soybeans Is Initially in Equilibrium,with an Upward-Sloping

question 175

Multiple Choice

The market for soybeans is initially in equilibrium,with an upward-sloping supply curve and a downward-sloping demand curve.Because of mad cow disease,producers decide to replace bone meal with soybeans in cattle feed.The likely effect is that the:

• A)equilibrium price and quantity of soybeans will rise.
• B)equilibrium price and quantity of soybeans will fall.
• C)equilibrium quantity of soybeans will rise,but we can't determine what will happen to the equilibrium price.
• D)equilibrium price of soybeans will rise,but we can't determine what will happen to the equilibrium quantity.

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Definitions:

Federal Trade Commission

A federal agency established to enforce antitrust and consumer protection laws in the United States, preventing unfair or deceptive business practices.

Bait-And-Switch

A deceptive marketing tactic where a product or service is advertised at a low price to attract customers, who are then persuaded to purchase a more expensive item.

Advertise

To publicly announce or promote products, services, or events through various media channels to attract public interest or awareness.

Expensive Item

A product or article that is priced high in comparison to other similar items.