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The effect of a change in demand across markets Consider the market for cherries shown on the following graph. This market is initially at equilibrium
The effect of a change in demand across markets Consider the market for cherries shown on the following graph. This market is initially at equilibrium where the supply curve (Supply) and demand curve (D1) intersect. Suppose that a news story suggesting that cherries contain dangerously high levels of pesticides compared to other fruits causes the demand for cherries to fall. The market for cherries after the change in demand is depicted by the new demand curve (D2).
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