Back to Assignment Attempts:     1.5             Do No Harm:    1.5 / 2   8. Shifts in supply or demand I The following graph shows the market for peanut butter in Miami, where there are over 1,000 stores that sell peanut butter at any given moment. Suppose the Surgeon General issues a public statement saying that consuming peanut butter is bad for your health. Show the effect of this change on the market for peanut butter by shifting one or both of the curves on the following graph, holding all else constant. Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.   DemandSupplyPRICE (Dollars per jar)QUANTITY (Jars)Demand   Supply      Now suppose Congress passes a new tax that decreases the income of Miami residents. If peanut butter is a normal good, this will cause the demand for peanut butter to    .     Grade It Now Save & Continue   Continue without saving

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Chapter1: Making Economics Decisions
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8. Shifts in supply or demand I

The following graph shows the market for peanut butter in Miami, where there are over 1,000 stores that sell peanut butter at any given moment. Suppose the Surgeon General issues a public statement saying that consuming peanut butter is bad for your health.
Show the effect of this change on the market for peanut butter by shifting one or both of the curves on the following graph, holding all else constant.
Note: Select and drag one or both of the curves to the desired position. Curves will snap into position, so if you try to move a curve and it snaps back to its original position, just drag it a little farther.
 
DemandSupplyPRICE (Dollars per jar)QUANTITY (Jars)Demand   Supply   
 
Now suppose Congress passes a new tax that decreases the income of Miami residents.
If peanut butter is a normal good, this will cause the demand for peanut butter to    .
 
 
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