Question

the law of supply and demand
assignment active
factors affecting demand
consider this scenario.

• in recent years many americans have started to pay more attention to the amount of sugar and calories in their diet.
• some soft drink companies are concerned about consumers desire to be healthier.
• they believe that this could result in a drop in demand for their products.

which factor affecting demand does this scenario illustrate?

• a change in the number of people in the population
• a change in the price of a substitute good from a rival soft drink company
• a change in consumer tastes and preferences
• a change in the price of a complementary good from a potato chip company

Explanation:

The scenario describes Americans paying more attention to sugar/calories (wanting to be healthier), which changes their preferences for soft drinks. A change in consumer tastes and preferences relates to how consumers' desires (like health - conscious choices) affect demand. The other options: population number change isn't shown, substitute/complementary good price changes aren't mentioned (the focus is on consumer health - related preferences, not prices of other goods).

Answer:

C. a change in consumer tastes and preferences