Question

For the given market, explain the effect on the demand curve, the supply curve, the equilibrium price, and the equilibrium quantity for the following event. The market for bagels. People realize how fattening bagels are. The ___ will decrease, and so the equilibrium price will ___ and the equilibrium quantity will ___. supply; fall; rise demand; fall; rise demand; fall; fall supply; fall; fall

Answer 1

Answer:

demand; fall; fall 

Explanation:

If people realise that bagels are fattening, they would reduce their demand for bagels. This leads to a leftward shift of the demand curve. It is assumed that the supply curve remains unchanged. The shift of the demand curve causes equilibrium price and quantity to fall.

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