If the National Institutes of Health publishes a study indicating that coffee drinking reduces the probability of getting colon cancer, it could positively influence the market for coffee. The determinant being affected in this scenario is consumer expectations regarding health benefits, which is a non-price factor influencing demand.
**Graphical Representation:**
1. **Before the Study:**
- Initially, the demand curve (D0) reflects the existing consumer preferences for coffee.
- The equilibrium is at point A (Q0, P0).
```
Price
│
P0│ A
│
│
│
│
└────────────── Quantity
Q0
```
2. **After the Study:**
- The positive health findings may shift the demand curve to the right (D1) as more consumers are attracted to coffee.
- The new equilibrium is at point B (Q1, P1).
```
Price
│
P1│ B D1
│
│ D0
│
│
└────────────── Quantity
Q1
```
**Effect on Equilibrium:**
- The increase in demand shifts the equilibrium from point A to point B.
- The quantity of coffee demanded (Q1) increases, leading to a higher equilibrium quantity.
- The price of coffee (P1) may also increase due to the higher demand.
**Explanation:**
1. **Increased Demand:**
- Positive health findings create a more favorable perception of coffee, increasing consumer demand.
- Consumers may be willing to pay a higher price for a product perceived as beneficial to health.
2. **Shift in Equilibrium:**
- The rightward shift in demand leads to a new equilibrium with a higher quantity and potentially a higher price.
- Producers respond to increased demand by supplying more coffee.
3. **Equilibrium Price and Quantity:**
- The equilibrium price (P1) is likely to rise due to increased demand.
- The equilibrium quantity (Q1) will increase as consumers purchase more coffee.
In summary, the positive health findings are expected to boost the market for coffee by increasing consumer demand, potentially leading to a higher equilibrium price and quantity.