The effect on the market for butter following a new study suggesting margarine causes?

Question

draw supply and demand diagram to illustrate the effects on market price and quantity. [initial demand curve (d1), initial supply curve (s1) initial price (p1), initial quantity (q1), new demand curve (d2), new supply curve (s2), final price (p2), final quantity (q2) ]

ECONOMICS

Answer 1

I am not positive on exactly what the question is. The answer will vary depending on the ending of the question. It could be one of two things, depending on what the last part of the question is. Here are the two scenarios and solutions.
1. Margarine causes.... cancer, some other hazardous health problem, etc. This will cause people to demand less margarine. Since butter is a substitute, demand for butter would increase. This would cause the price and quantity of butter demanded to increase. Supply would remain the same, as nothing to impact supply has occurred yet. So, net effects, supply stays the same, demand shifts upward or to the right, and the final price and quantity are where the old supply and the new demand cross.

2. Margarine causes...lower blood pressure, some other helpful benefit, etc. Since this would cause a benefit to the consumer that the consumer would desire, the consumer would demand more margarine. Since margarine and butter are substitutes, demand for butter would fall. So, demand will shift to the left or downward, price and quantity will fall. There will be no effect upon supply. The new price and quantity will be where the new demand meets the old supply curve.