Refer to the Provided Graph

question 37

Multiple Choice

Refer to the provided graph. Suppose consumers do not know the safety risks associated with a particular good and that the free-market equilibrium is at E, as shown in the diagram above. If an
Independent agency now provides accurate information to consumers about the harmful
Characteristics of the product, then

• A) the supply curve will shift to the left.
• B) the supply 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.

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Definitions:

Bacteria

Single-celled microorganisms with a wide range of functions, from causing disease to aiding in digestion and nutrient cycling.

Eukarya

One of the three domains of life, comprised of organisms with cells that contain a nucleus, including animals, plants, fungi, and protists.

Chemoautotrophs

Organisms that obtain their energy through the oxidation of inorganic molecules rather than from sunlight.

Organic Chemicals

Organic chemicals are compounds composed mainly of carbon and hydrogen, and may also contain elements like oxygen, nitrogen, sulfur, phosphorus, and others.