Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
outward shift in demand curve
B
no shift in demand curve
C
inward shift in demand curve
D
increase in supply curve
Understanding the Answer
Let's break down why this is correct
Answer
An outward shift of the demand curve happens when consumers are willing to buy more of a product at every price, such as when their income rises. A decrease in consumer preferences means people value the product less, so they want to buy less of it at each price. This change moves the demand curve to the left, an inward shift. For example, if people suddenly dislike coffee, the coffee demand curve shifts leftward as fewer cups are purchased at every price. Thus, a decline in preference causes an inward shift in demand.
Detailed Explanation
When people like a product less, they buy less at each price. Other options are incorrect because An outward shift means more demand; No shift means demand stays same.
Key Concepts
Demand curve shifts
Consumer preferences
Market equilibrium
Topic
Shifts in Demand Curve
Difficulty
easy level question
Cognitive Level
understand
Practice Similar Questions
Test your understanding with related questions
1
Question 1If consumers experience an increase in income, leading to a rise in their purchasing power, which of the following scenarios best describes the impact on the demand curve for a normal good?
mediumEconomics
Practice
2
Question 2How does an increase in consumer income typically affect the demand curve for normal goods, and what is the underlying reason for this shift?
hardEconomics
Practice
3
Question 3A sudden increase in consumer income leads to a shift in the demand curve for luxury cars. Which of the following best explains this change?
mediumEconomics
Practice
4
Question 4When consumer preferences shift in favor of a product, this results in a(n) __________ of the demand curve for that product.
easyEconomics
Practice
5
Question 5Which of the following factors can cause a shift in the demand curve for a product? Select all that apply.
easyEconomics
Practice
6
Question 6Arrange the following factors that can shift the demand curve in the correct order of their impact on consumer demand: A) Change in consumer preferences, B) Change in income, C) Change in prices of related goods, D) Change in population size.
mediumEconomics
Practice
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