Question

Synthesize Devise a fictional scenario in which advertising results in a shift in the demand curve for a product. Then, explain how the market reacted to re-establish equilibrium. I need the answer quickly please and thank you!!!!! I will give BRAINLIEST!!!!!

Answer 1

Answer:

Suppose that the product is tomatoes.

A new scientifc study from a renowned university finds that tomatoes are even healthier than thought before, and that they help prevent and treat diseases like diabetes.

Tomato producers quickly advertise these findings in new ads, which raises the demand for tomatoes, shifting the demand curve to the right.

This will cause the price of tomatoes rise as well, because demand is now higher. Suppliers will become more motivated to cultivate and produce more tomatoes than before because of the higher price, and in a relatively short time they will produce enough to meet demand, meaning that supply and demand will reach a new equilibrium under the new, higher price.