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Chapter 3: Q. c - For Critical Thinking (page 57)

What has happened to the position of the U.S. market demand curve for

chewing gum?Explain briefly.

Short Answer

Expert verified

A change in preferences of consumers led to fall in demand.

Step by step solution

01

Step1. Given information

Dentists convince the people that chewing gum is not healthy for the teeth.

02

Step2. Explanation

Since, people's preferences and taste changed and they now believe chewing gum is not healthy, this led to the leftward shift of the demand curve indicating a fall despite of no changes in the price.

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Most popular questions from this chapter

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