Scientific evidence suggests that consumption of foods rich in fiber lowers cholesterol.As a result, the demand for bran increases at every price by 5,000 bushels and the supply curve for bran is perfectly price elastic.The quantity of bran consumed will
A)not change.
B)change unless the demand curve is perfectly inelastic.
C)rise by exactly 5,000 bushels.
D)not rise by exactly 5,000 bushels unless the demand curve is perfectly inelastic.

Question

Quizplus · Accepted Answer

The demand for bran increases by 5,000 bushels due to the scientific evidence suggesting that consumption of fiber-rich foods lowers cholesterol. Since the supply curve for bran is perfectly price elastic, any increase in demand will result in an equal increase in quantity supplied. Therefore, the quantity of bran consumed will rise by exactly 5,000 bushels.

Scientific Evidence Suggests That Consumption of Foods Rich in Fiber