Which of the following statements most likely would account for the shift in the demand curve from D₁ to D₂shown in Figure 13-5B above? A) The firm increased its prices and consumers perceived the value of the product to be greater. B) There were more product substitutes available in the marketplace. C) Competitors in the market lowered their prices. D) A downward economic shift caused a proportionate change in consumer income. E) The firm's price remained the same but changes occurred in consumer tastes.

Question

Quizplus · Accepted Answer

The shift in the demand curve from D₁ to D₂ is shown as a movement along the same demand curve which suggests that the price did not change. Therefore, the shift can be attributed to a change in consumer tastes, preferences, or expectations. This is illustrated by the fact that at the same price level, consumers are now willing to purchase a greater quantity of the product.

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