A Change in Tastes Can Cause People to Move Down

question 73

True/False

A change in tastes can cause people to move down their demand curve, unlike an increase in income, which will cause the demand curve to shift.

---

Definitions:

MC Curve

Short for Marginal Cost Curve, it graphs the cost to produce one additional unit of a good or service against the quantity produced.

Purely Competitive

Refers to a market structure characterized by a large number of small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.

Produce

To create or manufacture goods and products for consumer use.

Cost Table

A detailed listing of all costs associated with specific actions or projects, often used for budgeting and financial planning.