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ankoles [38]
3 years ago
9

The federal government is concerned about obesity in the United States. Congress is considering two plans. One will ban the prod

uction and sale of "junk food." The other will increase nutrition-education programs and include substantial advertising campaigns to encourage healthy eating habits. In a clearly labeled separate diagrams, explain the effect of each of the above plans on the market price and quantity of Junk Foods. Which of these plans you would recommend to congress in its efforts to curb obesity in the U.S.?
Business
1 answer:
ddd [48]3 years ago
4 0

Answer:

The junk-food ban will reduce the quantity of junk food sold and raise the price. The education program will reduce the quantity of junk food sold and lower the price

Explanation:

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Number of producers

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Supply is the total amount of goods and services available to consumers in a market

The higher the number of producers, the higher the number of goods produced and  the higher the supply all things being equal. The reverse would be the case if the number of producers fall.

If the price of other good increases, it would be more profitable to produce the other goods. As a result, the number of producers available to  good would reduce.

Technological progress that reduces cost of production and makes production more efficient, would lead to an increase in supply.

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