Recent medical research revealed that the presence of gluten in oats can cause celiac disease in the elderly. since the elderly are an important consumer segment in this market, industry experts predicted a fall in the price of commercially-available oats. however, after the publication of the research, the price of oats actually increased. which of the following, if true, would explain this outcome? (a) suppliers of oats did not react to the news because they believed any change in demand would be temporary.(b) another research study noted that the gluten-content in oats, also used as livestock feed, does not affect the animals.(c) all consumers of oats, including the elderly, drastically reduced their consumption.(d) the availability of substitutes, such as wheat and barley, increased in the market.(e) the supply of oats came down drastically, with some major participants exiting the market.

Assume the government imposes a $2.25 tax on suppliers, which results in a shift of the supply curve from s1 to s2. the price the seller receives for the product after paying the tax is

Afinancial institution, the thriftem bank, is in the process of formulating its loan policy for the next quarter. a total of $12 million is allocated for that purpose. being a full-service facility, the bank is obligated to grant loans to different clientele. the following table provides the types of loans, the interest rate charged by the bank, and the possibility of bad debt as estimated from past experience. type of loaninterest rateprobability of bad debtpersonal.140.10car.130.07home.1 20.03farm.125.05commercial.100.02 bad debts are assumed unrecoverable and hence produce no interest revenue either. competition with other financial institutions in the area requires that the bank allocate at least 40% of the total funds to farm and commercial loans. to assist the housing industry in the region, home loans must equal at least 50% of the personal, car, and home loans. the bank also has a stated policy specifying that the overall ratio for bad debts on all loans may not exceed .04. formulate this problem as a linear program. define your variables clearly and write all the constraints explaining the significance of each.

Atax on the sellers of coffee will a. increase the price of coffee paid by buyers, increase the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. b. increase the price of coffee paid by buyers, increase the e ffective price of coffee received by sellers, and decrease the equilibrium quantity of coffee. c. increase the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and increase the equilibrium quantity of coffee. d. increa se the price of coffee paid by buyers, decrease the effective price of coffee received by sellers, and decrease the equilibrium quantity of coffee.