Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.As a result of the study,we could predict that the demand curve for orange juice will ________ and the equilibrium price will ________.

Question

Quizplus · Accepted Answer

The study suggests that there is now an increased perceived value of orange juice (lower risk of cancer), which will lead to an increase in demand. Therefore, the demand curve will shift to the right, resulting in an increase in equilibrium price as well.

Suppose That the Surgeon General Releases a Study Suggesting That