If the demand curve for bran muffins has shifted out due to a medical study that indicates that regular consumption of bran lowers cholesterol,then we can conclude that there has been
A)A response to the increase demand for a complementary good
B)A change in consumer tastes
C)A reduction in the production costs of bran
D)An increase in consumer expectations
E)An improvement in the economy,resulting in higher incomes

Question

Quizplus · Accepted Answer

A shift in the demand curve indicates a change in consumer preferences or tastes, as opposed to changes in production costs, income, or expectations. The medical study's evidence of the health benefits of bran consumption is likely to have influenced consumer preferences, leading to an increase in demand for bran muffins. The other options do not explain why the demand curve for bran muffins has shifted out.

If the Demand Curve for Bran Muffins Has Shifted Out