Market for baby formula D2 D Refer to exhibit 412 The discov

Market for baby formula D2 D. Refer to exhibit 4-12. The discovery that breast milk provides more protection against disease than baby formula will cause which of the following to happen? Select one: a. a movement from a to b on demand curve D b. a demand shift from D, to D2 C. movement from c to d on demand curve D, demand shift from D, to D o e. either a or b

Solution

As breast milk provides more protection against disease, people will prefer to feed breast milk to the babies than to feed baby formula. So the demand for baby formula will be decreased. Demand curve will be shifted to the left from D2 to D1. Therefore the option d is correct.