Suppose that recent studies conclude that high-fiber diets do not reduce the risk of developing colon cancer as was previously thought. The likely result will be that the:

A. demand for high-fiber foods will decrease.
B. quantity demanded of high-fiber foods will fall.
C. price of high-fiber foods will rise.
D. supply of high-fiber foods will increase.

Answer: A

Economics

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The government budget deficit, ________, is ________ when saving exceeds domestic investment

A) (T - G), created B) (T - G), partially financed C) (G - T), created D) (G - T), partially financed

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The payoff matrix below shows the payoffs (in millions of dollars) for two firms, A and B, for two different strategies, investing in new capital or not investing in new capital. An industry spy from firm A comes to firm B and offers to pay B in exchange for B's certain and enforceable promise to not invest. What is the most that firm A will be willing to pay B to not invest?

A. $30 million. B. $50 million. C. $20 million. D. $35 million.

Economics