Question

Assume we are looking at the market for soda. A medical study is published that says...

Assume we are looking at the market for soda. A medical study is published that says soda causes cancer. How would this market likely be affected

a.Supply increases..A shortage develops..price increases..higher prices prevail

b.Demand decreases..a surplus develops..price declines..lower prices prevail

c.Supply increases..A surplus develops..price increases..higher prices prevail

d.Demand decreases..a shortage develops..price declines..lower prices prevail

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer to the question:

Option b: Demand decreases..a surplus develops..price declines..lower prices prevail.

Explanation: As a result of the medical study some people will stop consuming soda. This will shift the demand curve for the soda to the left. This will result in the reducton of the demand. This will develop a surplus in the market since the demand falls short of the supply. As a result the price will decline and the lower price will prevail.

Hope, I solved your query. Give good feedback.

Comment, I'll get back to you ASAP.

Stay safe. Thank you.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Rising oil prices worry U.S. finance chiefs    ​Tupperware's CFO says rising oil prices would cause the...
Rising oil prices worry U.S. finance chiefs    ​Tupperware's CFO says rising oil prices would cause the company to pay​ $15 million more for resin than it did a year ago. Resin prices are closely tied to the price of​ oil, which peaked at​ $114 a barrel in​ April, 2011.    ​Source:The Wall StreetJournal​, June​ 27, 2011        Suppose that the government puts a price cap on resin at the resin price in 2010.     We would expect a shortage of resin in 2011...
1. The market for toasters is a competitive market. Suppose that the quantity of toasters supplied...
1. The market for toasters is a competitive market. Suppose that the quantity of toasters supplied per year depends as follows on the price of a toaster: Price (dollars per toaster) Quantity supplied (millions of toasters) 32 4.0 34 5.0 36 5.5 38 6.0 40 6.5 a. On a piece of graph paper, plot the supply curve for toasters. b. How does the quantity supplied of toasters change when the price changes? 2. The market for toasters is a competitive...
(30)Consider the market for chicken, if consumers use chicken and beef as substitutes, an increase in...
(30)Consider the market for chicken, if consumers use chicken and beef as substitutes, an increase in the price of beef given ceteris paribus will: (a)Decrease the demand for chicken creating a lower price and a smaller amount of chicken will be purchased in the market (b)Increase the supply of beef creating a surplus of beef in the market and a smaller quantity of chicken purchased in the market (c)(a) or (b) above            (d)None of the above (31)Which of the following...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run...
1) If the Federal Reserve conducts an open market purchase, we can expect that the short-run Phillips curve will shift left. the short-run Phillips curve will shift right. t here will be a movement to the right along the short-run Phillips curve. there will be a movement to the left along the short-run Phillips curve. the long-run Phillips curve will shift right. 2) In the long run, the Phillips Curve shows that the natural rate of unemployment is independent of...
12) When quantity supplied equals quantity demanded: Multiple Choice a)the market forces push the economy to...
12) When quantity supplied equals quantity demanded: Multiple Choice a)the market forces push the economy to produce more. b)equilibrium is reached. c)the market forces push the economy to produce less. d)the market forces cease to function. 13)Consider a market that is in equilibrium. If it experiences both an increase in demand and an increase in supply, what can be said of the new equilibrium? The equilibrium: Multiple Choice a)quantity will definitely rise, while the equilibrium price cannot be predicted. b)price...
ECO 101-S70: Final Quiz 2 CHAPTER 3: Demand, Supply and Equilibrium 1. Which of the following...
ECO 101-S70: Final Quiz 2 CHAPTER 3: Demand, Supply and Equilibrium 1. Which of the following could cause a decrease in consumer demand for product X? a.   a decrease in consumer income b.   an increase in the prices of goods which are good substitutes for product X c. an increase in the price which consumers expect will prevail for product X in the future d. a decrease in the supply of product X 2. If two goods are substitutes for...
1. Which is the most accurate definition of the study of economics? [1] Distributing surplus goods...
1. Which is the most accurate definition of the study of economics? [1] Distributing surplus goods to those in need. [2] Dealing with affluence in a morally bankrupt world. [3] Using scarce resources to satisfy unlimited human wants. [4] Reducing human wants to eliminate the problem of scarcity. 2. Computer software represents [1] labour. [2] land. [3] capital. [4] entrepreneurship. 3. Suppose you have graduated with a degree in accounting and are offered a job with an accounting firm. But...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s...
1.) True or False? For all societies, resources are scarce, and technology is limited, while people’s wants and needs for goods and services seem to be unlimited. (2 points) 2.) (1 point) Adam Smith’s “invisible hand” refers to a.) the subtle and often hidden methods that businesses use to profit at consumers’ expense. b.) the ability of free markets to reach desirable outcomes, despite the self-interest of market participants. c.) the ability of government regulations to benefit consumers, even if...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the...
2. A demand curve indicate a. the maximum willingness to pay for a given quantity b.the consumer's gain from exchange c.the market price of a good or service d. the equilibrum quantity 3. trade permitts countries to a. consume more than they capable of producing b.produce based on their comparative advantage c.specialize more fully d.all of above 4. which of the following dose not impact how elastic supply is? a. whether the supply is local or global b.the share of...
19. The method we used to determine whether a country/society was better or worse off after...
19. The method we used to determine whether a country/society was better or worse off after a change in policy or a movement towards free trade (from autarky) was a. by calculating the net effects b. by examining the total surplus c. by considering the deadweight loss triangles d. all of the above e. none of the above (not including d) ------------------------------------------------------------------------------------------------------------------------- 20. Consider the small Home country doing tariffs under PC. Which of the following statements is true? a....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT