In the graph in Question #19 above, suppose that, when trade is taking place at the equilibrium position, consumers in France now change tastes and shift their demand more toward clothing and away from wine. This change in tastes would
A) cause France's offer curve to shift or pivot downward and to the right.
B) cause France's offer curve to shift or pivot upward and to the left.
C) cause Korea's offer curve to shift or pivot upward and to the left.
D) cause Korea's offer curve to shift or pivot downward and to the right.

Question

Quizplus · Accepted Answer

A shift or pivot of France's offer curve downward and to the right reflects an increased willingness to trade wine for clothing, consistent with a shift in consumer preferences toward clothing and away from wine.

In the Graph in Question #19 Above, Suppose That, When