Normally an increase in the supply of a good will cause
A) a shift of consumer preferences in favor of that good.
B) consumers to use more of that good and less of others.
C) a shift of consumer preferences away from that good.
D) consumers to use less of that good and more of others.

Question

Quizplus · Accepted Answer

An increase in the supply of a good will lead to a decrease in its price, causing consumers to use more of that good and less of others because it now becomes more affordable compared to other goods. Option A is incorrect because preferences are not determined by an increase in supply but by individual tastes and experiences. Option C is also incorrect because an increase in supply does not result in a shift in preference against the good. Option D is not applicable because an increase in supply would result in a lower price, making it more attractive to consumers, and encouraging them to use more of the good.

Normally an Increase in the Supply of a Good Will