📚 Learning Guide
Shifts in Demand Curve
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A new health report reveals that a particular fruit is highly beneficial for heart health. How would this information likely affect the demand for that fruit? Classify the change in demand based on the factors that could shift the demand curve.

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Choose the Best Answer

A

Increase in demand due to change in consumer preferences

B

Decrease in demand due to increase in price

C

No change in demand as it is not a necessity

D

Decrease in demand due to decrease in consumer income

Understanding the Answer

Let's break down why this is correct

Answer

A new report saying the fruit boosts heart health will make more people want it, so the overall demand will rise. This change is a shift of the entire demand curve to the right, not just a movement along the curve, because people’s preferences and perceived value have increased. The factor at work is a change in consumer preferences or perceived benefits, which is a classic demand‑curve‑shifting factor. For example, if oranges are now linked to better heart health, people may buy more oranges at every price level, just as they would if a new health benefit were discovered. Thus the demand curve shifts right, reflecting higher willingness to buy at each price.

Detailed Explanation

The report tells people the fruit is good for heart health. Other options are incorrect because The idea that a price rise makes demand drop is about quantity, not a shift; Even foods that are not essentials can change demand when new information appears.

Key Concepts

Shifts in Demand Curve
Consumer Preferences
Market Dynamics
Topic

Shifts in Demand Curve

Difficulty

medium level question

Cognitive Level

understand

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