Asked by Emily Ratliff on Apr 25, 2024
Verified
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.
Market Economy
An economic system in which supply and demand from consumers primarily determine what, how, and for whom goods and services are produced.
Consumers' Desire
The inclination or preference of consumers towards certain products or services, which drives demand and influences market trends.
Product X
A placeholder name for any given product or service under consideration in an economic or marketing context.
- Understand the role and impact of consumers' preferences in a market economy.
- Comprehend the economic functions of profits and losses and their impact on resource allocation.
Verified Answer
Learning Objectives
- Understand the role and impact of consumers' preferences in a market economy.
- Comprehend the economic functions of profits and losses and their impact on resource allocation.
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