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1 vote
These graphs illustrate the demand of olive oil. Match the non-price determinants of demand with the type of shift in the demand curve they are likely to cause. A)Research shows that olive oilconsumption leads to hair loss B)A decrease in the priceof other vegetable oil C)A report in news stating thatconsumption of oilve oilimproves health D)A popular new diet prescribesonly olive oil for weight loss

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User Tariwan
by
8.5k points

2 Answers

2 votes

Final Answer:

A) C - Rightward shift

B) B - Rightward shift

C) D - Rightward shift

D) A - Leftward shift

Step-by-step explanation:

Non-price determinants of demand influence shifts in the demand curve. When research supports health benefits (C) or a new diet trend emerges (D), it increases the desire for olive oil, causing a rightward shift in demand. Conversely, a decrease in the price of other vegetable oils (B) also raises the demand for olive oil, leading to a rightward shift.

However, if research indicates negative effects like hair loss (A), it decreases the preference for olive oil, resulting in a leftward shift in the demand curve.

3 votes

Negative information or adverse effects (option A) leads to a leftward shift. Decrease in the price of substitutes (option B), positive information about health benefits (option C), and a new diet recommendation (option D) lead to rightward shifts in the demand curve.

Let's match the non-price determinants of demand with the type of shift in the demand curve they are likely to cause:

1. Research shows that olive oil consumption leads to hair loss (A):

Type of shift: Leftward shift

Negative information about the product (hair loss in this case) is likely to decrease the demand for olive oil, causing a leftward shift in the demand curve.

2. A decrease in the price of other vegetable oil (B):

Type of shift: Rightward shift

A decrease in the price of a substitute (other vegetable oil) would make olive oil relatively more attractive, increasing the demand for olive oil and causing a rightward shift in the demand curve.

3. A report in the news stating that consumption of olive oil improves health (C):

Type of shift: Rightward shift

Positive information about the health benefits of olive oil is likely to increase the demand for it, causing a rightward shift in the demand curve.

4. A popular new diet prescribes only olive oil for weight loss (D):

Type of shift: Rightward shift

A new diet that prescribes only olive oil for weight loss is likely to increase the demand for olive oil, causing a rightward shift in the demand curve.

These graphs illustrate the demand of olive oil. Match the non-price determinants-example-1
answered
User Yamiko
by
8.0k points
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