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Figure: Supply and Demand in the Apple Juice Market
-(Figure: Supply and Demand in the Apple Juice Market)Use Figure: Supply and Demand in the apple juice market.The market is in equilibrium at point C.A reputable scientist asserts in a major scientific publication that drinking apple juice will increase your life span.What will be the MOST likely new equilibrium point in the apple juice market?

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Figure: Supply and Demand in the Apple Juice Market 
-(Figure: Supply and Demand in the Apple Juice Market)Use Figure: Supply and Demand in the apple juice market.The market is in equilibrium at point C.A reputable scientist asserts in a major scientific publication that drinking apple juice will increase your life span.What will be the MOST likely new equilibrium point in the apple juice market?

Quizplus · Accepted Answer

The new information that drinking apple juice increases lifespan will lead to an increase in demand for apple juice, causing the demand curve to shift rightward from D1 to D2. As a result, the equilibrium price will increase from P1 to P2, and the equilibrium quantity will increase from Q1 to Q2. The new equilibrium point will be at B where the new demand curve (D2) intersects the original supply curve (S).

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