A recent survey showed the health benefits of cranberry juice for treating heart

Question

A recent survey showed the health benefits of cranberry juice for treating heart and other respiratory disorders. The exhibit below shows that the initial demand curve for cranberry juice is D1. Which of the following is likely to be a consequence of the publication of the survey?

a. The demand curve will shift from D1 to D3.

b.There will be a movement from point A to point C on D1.

C. There will be a movement from point A to point B on D1.

d. The demand curve will shift from D1 to D2

Explanation / Answer

the correct answer is: d) The demand curve will shift from D1 to D2

Reason: Clearly, this is an increase in demand (which occurs due to favorable changes in factors affecting the demand for a commodity other than its price). So, there should be a rightward shift of the demand curve from D1 to D2.

Thanks!

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