📚 Learning Guide
Supply and Demand Analysis
hard

Arrange the following events in the correct order to illustrate the impact on the peach market due to changes in external factors: A. Medical researchers find that eating peaches reduces cancer risk. B. The demand curve for peaches shifts to the right. C. Peach farm workers demand higher wages. D. The supply curve for peaches shifts to the left.

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Learning Path
Learning Path

Question & Answer
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2
Review Options
3
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Choose the Best Answer

A

A→B→C→D

B

C→A→D→B

C

A→C→D→B

D

D→B→A→C

Understanding the Answer

Let's break down why this is correct

Answer

First, medical researchers discover that eating peaches can lower cancer risk, which makes more people want to buy peaches. This increased interest causes the demand curve for peaches to shift to the right, meaning more peaches are in demand at every price. As demand rises, peach farm workers may feel they deserve higher wages due to the growing market, leading to their demands for increased pay. If farmers agree to pay the higher wages, their production costs go up, which can cause the supply curve for peaches to shift to the left, indicating that fewer peaches are available at previous prices. Overall, these events show how a positive health finding can change both demand and supply in the peach market.

Detailed Explanation

First, researchers find that peaches can help reduce cancer risk. Other options are incorrect because This order suggests that workers' wage demands come before the health benefits of peaches; This option places the wage demands before the health discovery.

Key Concepts

Supply and Demand
Market Equilibrium
Price Determination
Topic

Supply and Demand Analysis

Difficulty

hard level question

Cognitive Level

understand

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