In a market economy, a signiﬁcant change in consumers' desire for product X will
A) alter the proﬁts or losses received by suppliers of product X.
B) cause a reallocation of scarce resources.
C) cause some industries to expand and others to contract.
D) do all the things mentioned in the other answers.

Question

Quizplus · Accepted Answer

All of the options mentioned (altering profits/losses, reallocation of resources, expansion/contraction of industries) would occur as a result of a significant change in consumers' desire for product X in a market economy. Therefore, D is the best choice.

In a Market Economy, a Signiﬁcant Change in Consumers' Desire