Suppose that the Surgeon General releases a study suggesting that orange juice consumption increases the risk for diabetes.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 demand for orange juice is likely to decrease as consumers may want to avoid the increased risk for diabetes mentioned in the study. With decreased demand, the equilibrium price for orange juice would also decrease as suppliers try to sell their now less desirable product.

Suppose That the Surgeon General Releases a Study Suggesting That