If the CDC announces health benefits of walnuts, what happens in the market for walnuts?

In a scenario where the CDC announces health benefits of walnuts, the demand for walnuts is likely to increase. This is because consumers typically respond positively to health information by seeking out foods that are perceived as healthier. As more people want to purchase walnuts, the demand curve shifts to the right.

Since the question specifies that supply remains the same, there is no immediate change in the quantity of walnuts that producers are willing to supply at the current prices. However, the increase in demand results in a higher equilibrium price. The interaction between the unchanged supply and the increased demand leads to both an increase in price and an increase in the quantity of walnuts sold in the market.

This understanding aligns with basic supply and demand principles, where an increase in demand (with no accompanying increase in supply) typically results in higher prices and greater quantities sold, reflecting the correct answer.