question archive The news that oats can help reduce cholesterol has caused people to prefer to eat more oats
The news that oats can help reduce cholesterol has caused people to prefer to eat more oats
Subject:EconomicsPrice:2.88 Bought3
The news that oats can help reduce cholesterol has caused people to prefer to eat more oats. This change in preference would be expected to cause the demand curve for oats to shift to the right, and equilibrium price and quantity of oats to increase. If the price of oats increases, what effects might be felt in other markets, and why?
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The price of oats is increasing in response to the growing demand for oats. Therefore, the demand for associated products and their price will also increase. Milk is often purchased with oats along with sugar. The markets for these two products may see a sudden surge in price. Oats are also used in making oats cookies, oatmeal bread and sometimes instant oats noodles. Therefore, the prices for these products may also increase as the main product gets costlier.
