If the U.S. Surgeon General announced that increased grapefruit juice consumption could help prevent heart attacks, what would happen to the equilibrium price and quantity of grapefruit juice?

Question

Quizplus · Accepted Answer

With the announcement of increased grapefruit juice consumption preventing heart attacks, there will be a shift in the demand curve to the right. This will lead to an increase in both equilibrium price and quantity as consumers will be willing to purchase more grapefruit juice at a higher price. Therefore, the correct answer is D.

If the US Surgeon General Announced That Increased Grapefruit Juice Consumption Could