Wednesday, August 27, 2014

Demand and Changes in Preferences

The Wall Street Journal reports that demand for frozen food is declining in part due to changing preferences by customers.  In economics one way we represent consumer market behavior is using by using a demand curve.  As consumers behavior changes such as due to outside factors (such as tastes for a type of food) so will the demand curve representing that behavior.  Thus a decrease in the tastes or preferences for a product or service leads to a leftward shift in the demand curve for that product or service.

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