Suppose that the Surgeon General releases a study suggesting that orange juice consumption reduces the risk of cancer.We would predict that the equilibrium quantity of orange juice will ________ and the equilibrium price of orange juice will ________.

Question

Quizplus · Accepted Answer

The Surgeon General's study suggests that orange juice consumption has health benefits, which would increase the demand for orange juice. As a result, the equilibrium quantity of orange juice will increase. This increase in demand could also result in an increase in the equilibrium price of orange juice. Therefore, we would predict that the equilibrium quantity of orange juice will rise, and the equilibrium price of orange juice will rise or could stay the same.

Suppose That the Surgeon General Releases a Study Suggesting That