Multiple Choice
What happens in the market for beef jerky if customers expect a price increase in the future?
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3. Supply and Demand
Shifting Demand
Multiple Choice
What happens in the market for blenders if consumers decide that juicing their vegetables is better than blending their vegetables?
A
Demand shifts to the left
B
Demand shifts to the right
C
Supply shifts to the left
D
Supply shifts to the right
Verified step by step guidance1
Identify the key change in consumer preferences: Consumers now prefer juicing over blending.
Understand the impact of this change on the demand for blenders: A preference for juicing implies a decreased interest in blending, leading to a decrease in demand for blenders.
Apply the demand curve concept: A decrease in demand is represented by a leftward shift of the demand curve in the market for blenders.
Consider the supply side: Since the problem specifies a change in consumer preference, the supply of blenders remains unaffected initially.
Conclude the market effect: The primary effect is a leftward shift in the demand curve for blenders, indicating a decrease in demand due to the change in consumer preferences.
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