1. Exercise1.Scenario2:

Below is part of the response of the FDA to Dr. Oz which the FDA published at its website: ....When the Dr. Oz Show gave the FDA information suggesting that apple juice samples it had tested showed results as high as 36 parts per billion (ppb) of total arsenic, the FDA obtained its own samples of apple juice including a sample of the same lot of apple juice purportedly containing 36 ppbfor analysis. The FDA's test results do not support the findings of the Dr. Oz Show, and, in fact, are significantly less (2 to 6 ppb) than the levels found by the television program's analysis. Moreover, the vast majority of apple juice samples tested by the FDA over that past 20 years show that apple juice typically contains less than 10 ppb total arsenic. The FDA is committed to protecting the nation's public health through programs such as its toxic elements in food monitoring efforts and by providing consumers with scientifically credible information.

Assume that parents and consumers believe the FDA's response. Using the graphing space provided below in figure 2, draw supply and demand graphs to show the effect of FDA's rebuttal on the market for apple juice. Label your graph completely, and in the space below provide a full explanation