Question

What happens to the demand curve when taste changes in favor of a good?

A) The demand curve shifts to the left.
B) The demand curve shifts to the right.
C) The demand curve remains unchanged.
D) The demand curve becomes perfectly elastic.

Answer 1

A change in taste towards a good causes the demand curve to shift to the right, indicating an increase in demand.

Step-by-step explanation:

When taste changes in favor of a good, it leads to a shift in the demand curve. Specifically, the demand curve shifts to the right. This means that with the change in taste, more people are willing to buy the good at every price level. As a result, there is an increase in demand for the good.