Which of the following statements most likely would account for the shift in the demand curve from D1 to D2 shown in Figure 11-3b above?
A) The firm increased its prices and consumers perceived the value of the product to be greater.
B) There were fewer product substitutes available in the marketplace.
C) Competitors in the market raised their prices.
D) A recession occurred that raised consumers' incomes.
E) The firm's price remained the same but changes occurred in consumer tastes.

Question

Quizplus · Accepted Answer

A shift in the demand curve from D1 to D2 typically indicates a change in consumer preferences or tastes, leading to an increase in demand at the same price level.

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