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 for orange juice will ________ and the equilibrium price will ________.

Question

Quizplus · Accepted Answer

The release of the study suggesting that orange juice consumption reduces the risk of cancer will increase the demand for orange juice as people will perceive it as a healthy drink. As a result, the equilibrium price will increase because there will be more buyers willing to buy orange juice at a higher price due to the increased demand.

Suppose That the Surgeon General Releases a Study Suggesting That