Consider the demand for olive oil. What would happen to the demand for olive oil if a study confirming its beneficial health effects is published at the same time that an investigative report finds that much of the olive oil imported into the country is actually sunflower oil that has been dyed?
A) We would expect demand to shift to the right.
B) We would expect demand to shift to the left.
C) We would expect demand not to change.
D) We would expect demand to shift in each direction, but the final position will depend on which event has the bigger impact on demand.
Correct Answer:
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