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

In a market economy, changes in consumer preferences directly impact supply and demand dynamics, affecting profits or losses for suppliers, reallocating scarce resources, and causing some industries to expand while others contract. All these effects are interconnected.

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