A Shift to the Right in the Demand Curve for Product

question 49

Multiple Choice

A shift to the right in the demand curve for product A can be most reasonably explained by saying that:

• A) consumer incomes have declined and they now want to buy less of A at each possible price.
• B) the price of A has increased and,as a result,consumers want to purchase less of it.
• C) consumer preferences have changed in favor of A so that they now want to buy more at each possible price.
• D) the price of A has decreased and,as a result,consumers want to purchase more of it.

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Definitions:

Channel Conflict

This arises when different sales channels (such as online and brick-and-mortar stores) for the same product compete with each other, potentially undermining sales or brand coherence.

Horizontal

Relating to the expansion or operation across the same level or stage in the supply chain, industry, or market, often involving partnerships or mergers.

Vertical

Pertains to a market or industry structure where the production process, from raw materials to final product delivery, is integrated within a single company or closely controlled through a chain of ownership.

Wholesaler

A wholesaler is a person or company that sells goods in large quantities at lower prices to retailers, rather than selling them directly to consumers.