Figure 16.1 -Refer to Figure 16.1.If a firm expects that consumer preference for its product will increase in the future,this is best represented by a movement from A) point A to point C. B) point B to point A. C) point A to point B. D) point C to point A.

Question

Quizplus · Accepted Answer

Point A represents the current equilibrium where demand and supply intersect. If consumer preference for the product increases (i.e. demand increases), the new equilibrium will be at a higher price and quantity, represented by point B. Therefore, the movement from point A to point B represents an increase in consumer preference.

Figure 16.1 -Refer to Figure 16.1.If a Firm Expects That Consumer Preference