📚 Learning Guide
Shifts in Demand Curve
hard

If a popular new diet trend causes consumers to prefer organic foods over non-organic foods, what is the likely effect on the demand curve for organic foods?

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Choose the Best Answer

A

The demand curve for organic foods will shift to the right.

B

The demand curve for organic foods will shift to the left.

C

The demand for organic foods will decrease at all price levels.

D

The demand for organic foods will remain unchanged.

Understanding the Answer

Let's break down why this is correct

Answer

The trend makes more people want organic foods, so at every price they are willing to buy more. This causes the demand curve for organic foods to shift rightward, showing a higher quantity demanded at each price point. The shift happens because the new diet trend changes consumer preferences, increasing their willingness to pay for organic options. For example, before the trend a price of $5 might bring in 100 units sold, but after the trend the same price could bring in 150 units. The result is a higher demand curve, meaning either a higher price or a higher quantity sold.

Detailed Explanation

When a trend makes people like organic foods more, more people want to buy them at every price. Other options are incorrect because Some think a new trend might make people less interested, but that would lower demand, not raise it; The idea that demand drops at every price is a misunderstanding.

Key Concepts

Shifts in Demand Curve
Consumer Preferences
Market Demand
Topic

Shifts in Demand Curve

Difficulty

hard level question

Cognitive Level

understand

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