题目
题目

[ECON1010] Introductory Microeconomics (external). Summer Semester, 2025, External CML2 - Supply and Demand (1st attempt) [ECON1010] Introductory Microeconomics (external). Summer Semester, 2025, External CML2 - Supply and Demand (1st attempt)

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In 2014, a "health star rating system" on packaged food was implemented in Australia. The system was implemented with the aim of reducing Australia's obesity rates by making healthy food choices easier and therefore reduce the consumption of unhealthy food. Despite the Australian Government's efforts to reduce the consumption of unhealthy food, child obesity rates in Australia have continued to increase since 2014.Which of the following statements is true?

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The prompt presents a scenario about Australia’s health star rating system introduced in 2014 and its relation to obesity trends, asking which statement is true. We will evaluate each option on its own merits and consider what information is needed to determine overall demand shifts. Option 1: 'There are two shifts in demand that will produce an overall increase in demand.' To assess this, we would need to identify two distinct factors that raise the quantity demanded at every price (a rightward shift of the demand curve) for unhealthy foods, accounting for the premise that the policy aimed to steer choices toward healthier options. However, simply labeling two shifts as increasing demand for unhealthy foods would require evidence that those shifts are both present and net positive; the fact that obesity increased does not by itself prove demand increased for unhealthy foods, since obesity trends can be influenced by m......Login to view full explanation

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