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3. Suppose a new research study is published regarding health benefits of avocadoes. As a result, demand for avocadoes rise.
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3. When demand for a good changes due to change in price, it is called change in quantity demanded. The change in quantity demanded of a good is represented by a movement along the demand curve.

On the other hand, when demand for a good changes due to change in the factors other than own price, it is called change in demand. The change in demand is represented by a shift in the demand curve. An increase in demand is represented by rightward shift and a decrease in demand is represented by a leftward shift in the demand curve.

In the question, when the demand for avocadoes rises due to the research finding that avocadoes is beneficial fir health, it is called change in demand. So, the demand curve for avocadoes rises to the right as shown in the following graph. The initial demand and supply curve is D1 and S1 respectively. The initial equilibrium price is P1 and quantity is Q1. The new demand curve is D2. The new equilibrium price rises to P2 and the quantity rises to Q2.

Price ($) PE----X - Oq O2 cs Scanned with CamScanner cs Scanned with Quantity

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