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Figure: Shifts in Demand and Supply II
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The graph shows how supply and demand might shift in response to specific events.Suppose scientists discover that eating pomegranates causes ageing.Which panel BEST describes how this will affect the market for pomegranates?

Question

Use the following to answer questions:
Figure: Shifts in Demand and Supply II 
-(Figure: Shifts in Demand and Supply II)Use Figure: Shifts in Demand and Supply II.The graph shows how supply and demand might shift in response to specific events.Suppose scientists discover that eating pomegranates causes ageing.Which panel BEST describes how this will affect the market for pomegranates?

Quizplus · Accepted Answer

The discovery that pomegranates cause ageing would decrease demand for pomegranates, as consumers will be less likely to purchase them. This would result in a leftward shift of the demand curve, as shown in panel (b). As a result of this shift, the equilibrium price and quantity would both decrease.

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