If the U.S. Surgeon General announces that increased wheat consumption could cause heightened anxiety levels among children and adults, what happens to the equilibrium price and quantity of shredded wheat?

Question

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The announcement by the U.S. Surgeon General will lead to a decrease in demand for shredded wheat due to the potential increase in anxiety levels among consumers. As a result, the equilibrium price and quantity of shredded wheat will both decrease. This is represented by a leftward shift of the demand curve, leading to a new equilibrium point with a lower price and quantity.

If the US Surgeon General Announces That Increased Wheat Consumption Could Cause