The Equilibrium Price of Peanut Butter Is $5

question 81

Multiple Choice

The equilibrium price of peanut butter is $5.A study comes out that says the fat in peanut butter is good for your heart.Holding all other factors constant,which of the following scenarios could happen?

• A) The price of peanut butter increases to $7 because of a supply shift.
• B) The price of peanut butter decreases to $4 because of a supply shift.
• C) The price of peanut butter decreases to $4 because of a demand shift.
• D) The price of peanut butter increases to $7 because of a demand shift.
• E) The price of peanut butter increases to $7 because of a demand AND a supply shift.

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Definitions:

Employee Turnover

The rate at which employees leave a company and are replaced by new employees over a specified period, affecting organizational stability and costs.

Workforce Rightsizing

The process of adjusting the size of a company's workforce to match its current needs.

Infrastructure Costs

Expenses associated with the basic physical and organizational structures needed for the operation of a society or enterprise, such as roads, utilities, and buildings.

Fixed Assets

Long-term tangible assets held by an organization for producing goods or services, not expected to be converted to cash in the short term.