1. Shifts in supply or demand I The following graph shows the market for donuts in Dallas. where there are over 1,000 donut shops at any given moment. Suppose the Surgeon General issues a public statement saying that consuming donuts is bad for your health. Show the effect of this change on the market for donuts by shifting one or both of the curves on the following graph, holding all else constant. Curr-ct Ann-r / _ 3\"\" De *\\ PRICE [Dollars par donull QUANHTY (Donuts) Your Answer Points: 0.511 Close Explanation Explanation: When consumers nd out that eating donuts is bad for your health, this causes people to decrease their consumption of donuts. Therefore, the demand for donuts decreases, and the demand curve shifts to the left. Note that the supply curve does not shift because none of the factors affecting supply have changed