American consumers learn that grape consumption can reduce the incidence of heart disease.Everything else being equal, this will cause the
A)price of grapes to fall and decrease the quantity supplied.
B)supply of grapes to fall and the quantity demanded to increase.
C)quantity supplied of grapes to fall.
D)demand curve for grapes to shift to the right and increase the quantity supplied.

Question

Quizplus · Accepted Answer

When American consumers learn that grape consumption can reduce the incidence of heart disease, the demand for grapes will increase because consumers will want to buy more grapes in order to experience the health benefits. This will cause the demand curve for grapes to shift to the right, resulting in an increase in the quantity supplied. As a result, the price of grapes may increase, but the quantity supplied will increase as well. Therefore, the correct answer is D.

American Consumers Learn That Grape Consumption Can Reduce the Incidence