A publicized report that finds orange juice prevents certain diseases will have what effect on the equilibrium price and quantity of orange juice?
A)Price will increase,quantity will decrease
B)Price will increase,quantity will increase
C)Price will decrease,quantity will decrease
D)Price will decrease,quantity will increase
E)The new equilibrium price and quantity can not be determined

Question

Quizplus · Accepted Answer

The publicized report that orange juice prevents certain diseases will increase the demand for orange juice. This will shift the demand curve to the right, causing both price and quantity to increase. Thus, the new equilibrium point will be at a higher price and higher quantity than before.

A Publicized Report That Finds Orange Juice Prevents Certain Diseases