Use the following to answer questions:
Figure: Shifts in Demand and Supply
-(Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating a tomato a day prevents aging. Which panel BEST describes how this will affect the market for tomatoes?
A)panel A
B)panel B
C)panel C
D)panel D

Question

Use the following to answer questions:
Figure: Shifts in Demand and Supply 
-(Figure: Shifts in Demand and Supply) Look at the figure Shifts in Demand and Supply. The figure shows how supply and demand might shift in response to specific events. Suppose scientists discover that eating a tomato a day prevents aging. Which panel BEST describes how this will affect the market for tomatoes?
A)panel A 
B)panel B 
C)panel C 
D)panel D

Quizplus · Accepted Answer

The discovery that eating a tomato a day prevents aging will increase the demand for tomatoes, shifting the demand curve to the right. This will lead to an increase in both the equilibrium price and quantity, as shown in panel C.

Use the Following to Answer Questions