Aa Aa Aa The following graph shows the market demand for pomegranates. Suppose t

Question

Aa Aa Aa The following graph shows the market demand for pomegranates. Suppose that government reports link an outbreak of salmonella poisoning to a recent p crop. Show the impact of the government report by shifting the demand curve on the graph. Tool tip: Click and drag the curve. The curve will snap into position, so if you try to move the curve and it snaps back to uts original position, just try again and drag it a little farther. PRICE toollars per cratel of permegranatesl GUANTITYDEMANDEDICE ates MacBook Pro

Explanation / Answer

Regarding the outbreak of salmonella to pomegranate crop:

Correct answer is given. There will a decrease in demand and demand curve will shift to the left.

Regarding market demand of potted meat:

Given answer is incorrect. There will be increase in demand because potted meat is inferior good and its demand will increase during recession. Thus, demand curve will shift to the right.

Regarding the demand of ice cream:

Demand curve will shift to the left as it will come down due to increase in prices of its complement.

Regarding the demand of coffee:

Due to expected rise in prices of coffee, less coffee will be made available at the same price of before. Thus, demand curve will shift to the left.

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