Refer to the Provided Graph

question 51

Multiple Choice

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.

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Definitions:

Toddlers

Young children, typically aged one to three years old, who are in the early stages of walking and developing motor skills.

Attention

The cognitive process of selectively concentrating on one aspect of the environment while ignoring others.

Gains

Benefits or improvements, often resulting from investment, effort, or development in various contexts.

Age

The length of time that an individual has lived or a thing has existed.