📚 Learning Guide
Shifts in Demand Curve
easy

When consumer preferences shift in favor of a product, this results in a(n) __________ of the demand curve for that product.

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Learning Path
Learning Path

Question & Answer
1
Understand Question
2
Review Options
3
Learn Explanation
4
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Choose the Best Answer

A

increase

B

decrease

C

no change

D

flattening

Understanding the Answer

Let's break down why this is correct

Answer

When people start liking a product more, the whole demand curve moves to the right. This means that at every price, a larger quantity is now demanded. The shift shows that the product is now more popular, so buyers are willing to buy more even at the same price. For example, if a new study shows that a certain brand of cereal is healthier, more people will buy it, so the demand curve for that cereal shifts rightward. This rightward shift reflects the increased demand caused by the change in consumer preferences.

Detailed Explanation

A shift to the right means that at every price, people want to buy more of the product. Other options are incorrect because The idea that preferences shift away from a product would lower demand, not raise it; A shift in preferences always changes the demand curve.

Key Concepts

Demand curve shifts
Consumer preferences
Elasticity of demand
Topic

Shifts in Demand Curve

Difficulty

easy level question

Cognitive Level

understand

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