A new fashion trend increases consumer preference for canvas shoes. How will this affect the market?

Question

BlackTom AI · Accepted Answer

An increase in consumer preference shifts the demand curve to the right, raising equilibrium price and quantity until a new market equilibrium is reached.

1) Relevant knowledge points and concepts
- Demand curve: shows quantity demanded at each price; non-price determinants (preferences, income, tastes) shift the curve.
- Supply curve: shows quantity supplied at each price; remains fixed unless supply-side factors change.
- Equilibrium: intersection of supply and demand determines market price and quantity.
- Movement along a curve vs. shift of a curve: price changes cause movement along curves; non-price changes cause shifts.

2) Step-by-step reasoning
- The fashion trend is a change in consumer tastes, a non-price determinant of demand.
- Because consumers now prefer canvas shoes more, at every price the quantity demanded increases.
- Graphically, the entire demand curve shifts right (from D0 to D1).
- The supply curve (S) is unchanged because producers’ costs or technology were not affected.
- The new intersection of S and D1 is at a higher quantity (Q1 > Q0) and typically a higher price (P1 > P0).
- That new intersection is a new equilibrium (new price and quantity).

3) Calculations / intermediate steps
- No numerical values are given, but conceptually: initial equilibrium (P0, Q0) solves S(P0) = D0(P0). After shift, new equilibrium (P1, Q1) solves S(P1) = D1(P1), with D1(P) > D0(P) for all P, so P1 > or = P0 and Q1 > Q0 (usually both increase).

4) Why the correct answer is correct
- Option (a) states a new equilibrium will be established, which matches the economic prediction: a demand shift leads to a new intersection of supply and demand, i.e., a new equilibrium price and quantity.

5) Why other options are incorrect
- (b) No change in either curve: incorrect because consumer tastes changed, so demand must change (shift).
- (c) Movement along the supply curve: incomplete/incorrect — while the supply curve is unchanged, the market moves to a different point on the supply curve because price changes, but the primary effect is a demand shift producing a new equilibrium; the option implies only movement (no shift), which misstates the cause.
- (d) A fixed price will be enforced: not implied by the scenario; nothing in the question indicates government price controls.

6) Conclusion
- Therefore the correct outcome is that a new equilibrium will be established, confirming answer (a).

A new fashion trend increases consumer preference for canvas shoes. How will this affect the market?单项选择题

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