If a new study shows a connection between eating avocados and a lowered risk of disease, what do you think will happen? (3 point
s) 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.
B. Demand for avocados will increase, causing prices to increase.
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 <em>coeteris paribus</em> 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.
