Use the following to answer question(s): Demand and Supply Shifters

-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose the Surgeon General announces that eating chocolate prevents heart disease.Which panel best describes how this will affect the market for chocolate?

Question

Use the following to answer question(s): Demand and Supply Shifters
 
-(Exhibit: Demand and Supply Shifters) The exhibit shows how supply and demand might shift in response to specific events.Suppose the Surgeon General announces that eating chocolate prevents heart disease.Which panel best describes how this will affect the market for chocolate?

Quizplus · Accepted Answer

The announcement from the Surgeon General that eating chocolate prevents heart disease will increase the demand for chocolate. This shift in demand is represented by a rightward shift of the demand curve, as shown in Panel (b). This results in an increase in both the equilibrium quantity and price of chocolate.

Use the Following to Answer Question(s): Demand and Supply Shifters