A decrease in consumer preference for a product, other things being equal, will cause:

Question

BlackTom AI · Accepted Answer

When consumer preferences for a product decline, the overall desire to purchase that product at every price tends to fall. This change is captured by a leftward shift of the market demand curve, not just a movement along the curve, because the entire relationship between price and quantity demanded has weakened.

In this context, 'other things being equal' means all other determinants of demand (income, prices of related goods, expectations, number of buyers, etc.) are held constant, so the sole change is the change in preference. A lower preference translates into a smaller quantity demanded at every price, which is represented graphically by a shift of the demand curve to the left.

It is important to distinguish between a shift in demand and a change in quantity demanded. A decrease in preference does not merely cause a movement up or down the same demand curve (which would be a change in quantity demanded due to a price change); it shifts the entire curve leftward because the baseline willingness to buy has dropped.

Given that the provided answer states 'market demand to shift to the left,' this aligns with the concept that a drop in consumer preference reduces overall demand for the product at all price levels, resulting in a leftward shift of the market demand curve.

ECON 203-0001 Chapter 6

A decrease in consumer preference for a product, other things being equal, will cause:

View Explanation

Log in for full answers

Similar Questions

The possible reason for the movement from point A to point B on the figure below is changing ___.

Figure 4-3 Refer to Figure 4-3. The shift from Da to Db is called

Which of the following would shift the demand curve for gasoline to the right?

Refer to Figure 3-1. Using the graph below and beginning on D1, a shift to D2 would indicate a(n):

Part E: A decrease in demand would be represented by a shift from D2 to

The graph above shows demand pivoting outward. Which of the following statements is correct?

MC Qu. 81 A tax on buyers will cause... A tax on buyers will cause the Blank schedule to shift Blank . BlackTom Analysis

More Practical Tools for Students Powered by AI Study Helper

Homework AI Solver

Stylized AI Paper Writer

Plagiarism Checker Assistant

Citation AI Academic Writing Tool

In-Class Translation Assistant

AI Note Generator

AI Quiz Answers

Past Exam Questions from University Test Bank

Smart Practice Assistant

Adaptive Practice

Making Your Study Simpler

ECON 203-0001 Chapter 6

A decrease in consumer preference for a product, other things being equal, will cause:

View Explanation

Log in for full answers

Similar Questions

The possible reason for the movement from point A to point B on the figure below is changing ___.

Figure 4-3 Refer to Figure 4-3. The shift from Da to Db is called

Which of the following would shift the demand curve for gasoline to the right?

Refer to Figure 3-1. Using the graph below and beginning on D1, a shift to D2 would indicate a(n):

Part E: A decrease in demand would be represented by a shift from D2 to

The graph above shows demand pivoting outward. Which of the following statements is correct?

MC Qu. 81 A tax on buyers will cause... A tax on buyers will cause the ________ Blank schedule to shift ________ Blank . BlackTom Analysis

More Practical Tools for Students Powered by AI Study Helper

Making Your Study Simpler

MC Qu. 81 A tax on buyers will cause... A tax on buyers will cause the Blank schedule to shift Blank . BlackTom Analysis