Asked by Fatihah Masri on May 09, 2024
Verified
(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 aging.Which panel BEST describes how this will affect the market for pomegranates?
A) Panel A
B) Panel B
C) Panel C
D) Panel D
Pomegranates
Fruits with a tough outer skin and a multitude of edible seeds inside, known for their sweet and tart flavor and health benefits.
Aging
The process of becoming older or more mature, often referring to the biological and social changes that occur over time in living organisms.
- Dissect how occurrences beyond the market's control affect its equilibrium concerning price and quantity.
- Acknowledge how modifications in consumer preferences affect the demand in the marketplace.
Verified Answer
ES
Ethakota SriramMay 12, 2024
Final Answer :
B
Explanation :
The discovery that eating pomegranates causes aging would decrease the demand for pomegranates as consumers would be less likely to buy them. This would cause a leftward shift in the demand curve, as shown in Panel B where D1 shifts to D2. As a result, the equilibrium price and quantity would both decrease.
Learning Objectives
- Dissect how occurrences beyond the market's control affect its equilibrium concerning price and quantity.
- Acknowledge how modifications in consumer preferences affect the demand in the marketplace.
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