13)If diet-conscious buyers learn that McDonalds food has a higher fat content than they find desirable, the likely effect in the market for food sold by McDonalds would be a)an increase in equilibrium price and a decrease in equilibrium quantity b)an increase in equilibrium price and an increase equilibrium quantity c)a decrease in equilibrium price and a decrease in equilibrium quantity d)a decrease in equilibrium price and an increase in equilibrium quantity Answer: C 14)Consider a situation in which both of the following scenarios occur at the same time for Kraft: (1) Healthier products increase consumer preferences for Kraft foods and (2) lawsuits result in heavy penalties for Kraft that increase its cost of production. Which of the following accurately describes the effect of both of these events occurring simultaneously? 15)Consider the market for snowboards. What will happen to the equilibrium price and quantity of snowboards if the price of lift tickets increases?
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