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 of these.

Question

Quizplus · Accepted Answer

A significant change in consumers' desire for product X will lead to a change in the demand and supply of that product. This change in demand will alter the profits or losses received by suppliers of product X. As a result, the reallocation of scarce resources will take place, and some industries may expand while others may contract. Therefore, all these options are correct.

In a Market Economy a Significant Change in Consumers' Desire