You are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product Xupon (1) the demand (D) for, or supply (S) of, X, (2) the equilibrium price (P) of X and (3) the equilibrium quantity (Q) of X.Refer to the above.An increase in the tastes and preferences for X will:

Question

Quizplus · Accepted Answer

An increase in tastes and preferences for X will increase the willingness of consumers to buy the product, leading to an increase in demand (D). As a result, equilibrium price (P) and quantity (Q) will both increase. This change does not affect supply (S). Therefore, options A and B can be eliminated. Option D is also incorrect as it suggests a decrease in demand, which is inconsistent with the given scenario.

You Are Asked to Determine, Other Things Equal, the Effects