Suppose consumers decide they value a product more highly than before. Then, the efficient quantity to produce of that product
A) decreases.
B) increases.
C) does not change.
D) perhaps changes, but without more information the direction of the change cannot be told.

Question

Quizplus · Accepted Answer

When consumers value a product more highly, their willingness to pay for the product increases. This typically shifts the demand curve to the right, indicating a higher quantity demanded at each price level. In a market striving for efficiency, the quantity produced would increase to meet this higher demand, making choice B correct.

Suppose Consumers Decide They Value a Product More Highly Than