Asked by Ogheneruno Siakpebru on May 19, 2024
Verified
If consumer desire for product X increases,all of the following will occur except:
A) an increase in the profits of industry X.
B) an increase in the quantity of resources employed by industry X.
C) an increase in the output of industry X.
D) a decrease in the quantity of resources employed in industry X.
Consumer Desire
The inclination or preference of consumers towards certain products or services, which influences their purchasing decisions.
Industry X
A placeholder term used to reference a specific, but unnamed industry or sector within the economy.
- Analyze the dynamic nature of consumer preferences and its impact on industry profitability and resource allocation.
Verified Answer
NA
Nasser AamerMay 21, 2024
Final Answer :
D
Explanation :
If consumer desire for product X increases, it is likely that industry X will increase its output and profits, which would result in an increase in the quantity of resources employed by industry X. A decrease in the quantity of resources employed in industry X is unlikely to occur as the industry would require more resources to meet the increased demand for the product. Therefore, option D is the exception as it is unlikely to occur.
Learning Objectives
- Analyze the dynamic nature of consumer preferences and its impact on industry profitability and resource allocation.
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