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Question

When consumers hear reports that worry them about a product's safety, what will happen? Describe the possible effect on demand and price.

Solution

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Answered 2 years ago
Answered 2 years ago
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A factor that can affect demand and cause it to move to a new equilibrium point is consumer preferences and tastes. These preferences and tastes are constantly changing, whether due to trends, fashion, advertising or preferences of social groups will make the demand increase or decrease.

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