Which of the following statements most likely would account for the shift in the demand curve shown in Figure 13-5b?
A)The firm increased its prices and the value of the product was perceived to be greater.
B)There were more product substitutes available in the marketplace.
C)Competitors in the market lowered their prices.
D)The firm's price remained the same but changes occurred in consumer tastes.

Question

Quizplus · Accepted Answer

The shift in the demand curve can be attributed to changes in consumer tastes or preferences. As consumer tastes change, the demand for a product may increase or decrease, resulting in a shift in the demand curve. This can happen even if the firm's price and the availability of substitutes in the market remains the same. Therefore, option D is the most likely statement to account for the shift in the demand curve shown in Figure 13-5b.

Which of the Following Statements Most Likely Would Account for the Shift