Refer to the provided graph. Suppose consumers do not fully appreciate the benefits of the product whose market is shown in the graph. If an external agency is able to provide full information to consumers about the benefits of the product, then
A)the supply curve will shift to the left.
B)the demand curve will shift to the right.
C)both the new equilibrium price and quantity will be lower.
D)the new equilibrium price will be higher but the equilibrium quantity will be either higher or lower.

Question

Refer to the provided graph. Suppose consumers do not fully appreciate the benefits of the product whose market is shown in the graph. If an external agency is able to provide full information to consumers about the benefits of the product, then
A)the supply curve will shift to the left. 
B)the demand curve will shift to the right. 
C)both the new equilibrium price and quantity will be lower. 
D)the new equilibrium price will be higher but the equilibrium quantity will be either higher or lower.

Quizplus · Accepted Answer

The Answer of  Refer to the provided graph. Suppose consumers do not fully appreciate the benefits of the product whose market is shown in the graph. If an external agency is able to provide full information to consumers about the benefits of the product, then
A)the supply curve will shift to the left. 
B)the demand curve will shift to the right. 
C)both the new equilibrium price and quantity will be lower. 
D)the new equilibrium price will be higher but the equilibrium quantity will be either higher or lower.

Refer to the Provided Graph