What is the effect on the price and quantity of rice if a credible study shows that eating rice is beneficial to health?

When a credible study indicates that eating rice is beneficial to health, this creates an increase in demand for rice. Consumers who were previously indifferent or skeptical about rice may now seek out rice to incorporate its health benefits into their diets.

As demand increases, the market response is typically a rise in the price of rice due to the higher willingness of consumers to purchase more at a given price. Thus, while quantity will definitely increase because more people want to buy rice, the effect on price depends on how the supply side responds to this heightened demand. If the supply of rice cannot quickly adjust (for instance, due to limitations in production capacity or time needed to increase planting), the price is likely to rise. However, if producers can readily increase supply in response to increased demand, it might keep price more stable.

Therefore, the assertion that the price is ambiguous reflects this dual possibility: it could go up if demand significantly outstrips supply or remain relatively stable if supply can catch up quickly. What is clear is that the quantity of rice sold will increase, since more consumers are inclined to purchase rice as a result of its newfound health benefits.