Question

ME ECON 202 Test #1 Study Guide - X Bb ECON202 M11 Onlineligs.pdf x B Take Test: ECON 202 Test #1 - M X Get Hurrework Help With Chegy X + → C 0 blackboard towson.edu/bbcswebdav/pid-5611929-dt-content-rid-41510796_2/courses/001789-01-1201-3W-900-01105... ☆ ECON202_MT1_OnlineFigs.pdf ECON202_MT1_OnlineFigs.pdf - 212 T . D. A D. dB De ac Figure 3: Demand curve. 2:40 PM Type here to search

Refer to Figure 3. Which of the following would cause the demand curve to shift from Demand C to Demand A in the market for oranges in the United States?

		a freeze in Florida
		a technological advance that allows oranges to ripen faster
		a decrease in the price of tangerines
		an announcement by the FDA that oranges prevent heart disease

Refer to Figure 3. Which of the following would cause the demand curve to shift from Demand A to Demand B in the market for oranges in the United States?

		a freeze in Florida
		a technological advance that allows oranges to ripen faster
		a decrease in the price of tangerines
		an announcement by the FDA that oranges prevent heart disease

Answer 1

1. A decrease in the price of tangerines cause the demand curve to shift from Demand C to Demand A in the market for oranges in the United States because these are the substitute goods. Here, the decrease in the price of tangerines leads to fall in the demand of oranges in the market. And so the demand curve shifts from demand C to demand A.

2. An announcement by the FDA that oranges prevent heart disease leads to the  demand curve to shift from Demand A to Demand B in the market for oranges in the United States. As people starts demanding more oranges. So the demand would increase and the curve shifts to the rightward.