Which of the following exemplifies a change in buyers' tastes?

• A. A new health study reveals that eating avocados is beneficial, leading more consumers to prefer avocados.
• B. A tax is imposed on avocado imports, raising their market price.
• C. The price of avocados decreases due to a bumper harvest.
• D. The income of consumers increases, allowing them to buy more avocados.

Answer: (A)

Verified step by step guidance

1. Understand that a change in buyers' tastes refers to a shift in consumer preferences or desires for a good, independent of price or income changes.
2. Identify that a new health study revealing benefits of eating avocados directly affects consumers' preferences, making them want to buy more avocados because they now value them more.
3. Recognize that a tax on imports or a change in price due to supply (like a bumper harvest) affects the price, not the taste or preference itself.
4. Note that an increase in consumer income affects demand through the income effect, not through a change in tastes.
5. Conclude that the example involving the health study is the one that exemplifies a change in buyers' tastes because it changes the desirability of the good itself.