Use the following to answer question:
-(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

Question

Use the following to answer question: 
-(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

Quizplus · Accepted Answer

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.

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