54.1k views
12 votes
If a new study shows a connection between eating avocados and a lowered risk of disease, what do you think will happen? (3 points)

Demand for avocados will decrease, causing prices to increase.
Demand for avocados will increase, causing prices to increase.
Demand for avocados will decrease, causing prices to decrease.
Demand for avocados will increase, causing prices to decrease.

2 Answers

14 votes

Answer:

demand for avocados will increase, causing prices to increase

User Gavin Coates
by
3.6k points
10 votes

Answer:

What will happen is:

B. Demand for avocados will increase, causing prices to increase.

Step-by-step explanation:

If a study shows a connection between consuming avocados and lowered risk of disease, it is likely that more people will start buying avocados. In other words, the demand for avocados will increase. If the condition of coeteris paribus is true - that is, if everything else remains the same -, then the price of avocados will also increase. Simply put, if more people buy avocados, the avocado producers will see this as an opportunity to make more money, so they will raise the prices.

User Dervall
by
3.6k points