A decrease in consumer preference for a product, other things being equal, will cause:
A) a decrease in supply.
B) market demand to shift to the left.
C) market demand to shift to the right.
D) quantity demanded is not a price function.

Question

Quizplus · Accepted Answer

A decrease in consumer preference for a product leads to a decrease in the quantity demanded at each price, which is represented by a leftward shift in the market demand curve. This does not affect the supply directly, nor does it cause a rightward shift in demand. Quantity demanded is indeed a function of price, but that's not what's being affected here; it's the demand curve itself that is shifting.

A Decrease in Consumer Preference for a Product, Other Things