Suppose consumers decide they value a product more highly than before. Then the efficient quantity to produce of that product
A) increases.
B) does not change.
C) decreases.
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, the demand for the product increases, leading to a higher efficient quantity to produce to meet the increased demand.

Suppose Consumers Decide They Value a Product More Highly Than