Question

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.

Answer 1

a. Suppliers of oats did not react to the news because they believed any change in demand would be temporary.

Step-by-step explanation:

Other recent studies have linked oat consumption with cholesterol reduction.

These studies also revealed that oat provides many health benefits. It is a good source of fiber (especially beta-glucan), vitamins, minerals, antioxidants and the only source of a unique group of antioxidants called avenanthramides, known to have protective effects against heart disease.

Due to its health benefits such as lowering blood sugar and cholesterol levels, oats have gained considerable health food status.