When consumers in a market become fully informed of negative information about the product, we can expect the
A) demand curve for the product to shift to the right.
B) demand curve for the product to shift to the left.
C) supply curve for the product to shift to the right.
D) supply curve for the product to shift to the left.

Question

Quizplus · Accepted Answer

When consumers become fully informed of negative information about a product, it is likely to decrease their willingness to purchase the product, leading to a shift in the demand curve to the left. This is because the negative information may lead them to switch to substitutes or simply forgo the product altogether. A shift in the supply curve is not expected, as the negative information does not directly affect the production or availability of the product.

When Consumers in a Market Become Fully Informed of Negative