Problem One
Demand Decrease Demand Increase
Many Producers enter the market Poor Harvest
Other oils decrease in price* Olive Oil improves Health
*Other oils decrease in price doesn't appear to affect the price of Olive Oil but it does. Of the common oils you can buy at (say) Walmart, Olive Oil is the most expensive. If the other oils are dropping their price, that creates more competition for Olive Oil. If you are a single mom or a senior citizen living on a fixed income and you see a drop in price, what are you going to do? Probably buy Canola Oil which is a good oil and leave the olive oil on the shelf. Demand decreases.
I guess you want proof. If many people who produce Olive Oil enter the market, that creates a supply glut. It has to lower the demand because there is more product and the number of people buying olive oil (in this problem) likely stays the same. The producer will think the demand goes down.
If you have a poor harvest, it means that the supply of Olive Oil decreased. That said the price will go up even if the number of people buying Olive oil stays constant.
If anyone says that Olive Oil improves health, then that's a recommendation to stay away from things like Corn Oil which will not get the same recommendation. My wife would be the first to tell you that this claim is absolutely true and she won't cook with anything but Olive Oil. So price does not become a consideration. People who are health conscious will buy what they need to give them a better chance at life.
Problem Two
*You have one ambiguous one, and I'm going to deal with it separately. "Doctors Recommend Safflower Oil" Is this question still about Olive Oil? If it is then Olive Oil's demand goes down and Safflower Oil goes up. If we don't know the oil and it is just oil in general, the Safflower Oil will certain lift all oils. So I don't know how to answer this.
Demand Down Demand up
Oil Free Diet Doctors recommend Safflower*
Olive Oil for Skin and Hair
Heart Health good with Olive Oil
An oil free diet is a sure sign that demand will tend to dry up. Mind you the claim is incorrect. We do need a certain small amount of fat in our diet.
Heart Health is a call for increased demand. We are all concerned about our hearts. Anything we can do to improve our health is a boon.
You better stock up plenty of Olive Oil if anyone says anything about skin and hair that's a recommendation (and it is). Women will do anything to improve their skin and hair and Olive Oil is very inexpensive in that arena.
The Safflower Oil has been discussed above.
