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Can you explain the answer of this question below:
Unfavorable change in the taste for a good leads to
- A:Shift of the demand curve of the given good only
- B:Movement of the demand and supply curves of the given good
- C:Shift of the demand and supply curves of the given good
- D:Contraction of the demand for the given good
The answer is D.
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Can you explain the answer of this question below:Unfavorable change i...
Ans :TASTE AND PREFERENCES --~The demand for a commodity is also affected by the taste and preference of the consumer. ~The demand for a commodity will increase if consumer’s taste changes in favour of the commodity and,~Any UNFAVORABLE CHANGE in taste or PREFERENCE will REDUCE the DEMAND for the COMMODITY.
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Can you explain the answer of this question below:Unfavorable change i...
Unfavorable change in the taste for a good leads to a shift of the demand curve of the given good only.
When there is an unfavorable change in the taste for a good, it means that consumers' preferences or desires for that particular good have decreased. This can be due to various factors such as a shift in consumer preferences, the introduction of new and more attractive alternatives, or a change in social or cultural norms.
Effect on Demand
This unfavorable change in taste directly affects the demand for the good. As consumers no longer find the good as desirable as before, they are less willing to purchase it at any given price. This leads to a decrease in the quantity demanded at each price level, resulting in a leftward shift of the demand curve.
Shift of the Demand Curve
The demand curve represents the relationship between the price of a good and the quantity demanded. When there is an unfavorable change in taste for a good, the entire demand curve shifts. This means that at any given price, consumers are now willing to buy less of the good compared to before the change in taste.
Impact on Price and Quantity
The shift of the demand curve to the left signifies a decrease in both the equilibrium price and quantity. The decrease in quantity demanded puts downward pressure on the price as producers try to sell more of the good. As a result, the price of the good decreases. The decrease in quantity demanded and the decrease in price are directly related to the shift in the demand curve caused by the unfavorable change in taste.
Conclusion
In summary, an unfavorable change in the taste for a good leads to a shift of the demand curve of the given good only. This shift represents a decrease in consumer willingness to purchase the good at any given price, resulting in a decrease in both the equilibrium price and quantity.
When there is an unfavorable change in the taste for a good, it means that consumers' preferences or desires for that particular good have decreased. This can be due to various factors such as a shift in consumer preferences, the introduction of new and more attractive alternatives, or a change in social or cultural norms.
Effect on Demand
This unfavorable change in taste directly affects the demand for the good. As consumers no longer find the good as desirable as before, they are less willing to purchase it at any given price. This leads to a decrease in the quantity demanded at each price level, resulting in a leftward shift of the demand curve.
Shift of the Demand Curve
The demand curve represents the relationship between the price of a good and the quantity demanded. When there is an unfavorable change in taste for a good, the entire demand curve shifts. This means that at any given price, consumers are now willing to buy less of the good compared to before the change in taste.
Impact on Price and Quantity
The shift of the demand curve to the left signifies a decrease in both the equilibrium price and quantity. The decrease in quantity demanded puts downward pressure on the price as producers try to sell more of the good. As a result, the price of the good decreases. The decrease in quantity demanded and the decrease in price are directly related to the shift in the demand curve caused by the unfavorable change in taste.
Conclusion
In summary, an unfavorable change in the taste for a good leads to a shift of the demand curve of the given good only. This shift represents a decrease in consumer willingness to purchase the good at any given price, resulting in a decrease in both the equilibrium price and quantity.
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Can you explain the answer of this question below:Unfavorable change in the taste for a good leads toA:Shift of the demand curve of the given good onlyB:Movement of the demand and supply curves of the given goodC:Shift of the demand and supply curves of the given goodD:Contraction of the demand for the given goodThe answer is D.
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