National Economics Challenge 2025 – 400 Free Practice Questions to Pass the Exam

A good can become more desirable with effective marketing strategies aimed at a niche audience despite an increase in its price. This is often achieved through branding, targeted advertising, or creating a perception of exclusivity and uniqueness. When consumers perceive the good as high-quality or premium, the higher price may not deter them; instead, it might enhance the product's attractiveness, making it a status symbol or a luxury item. This phenomenon is particularly evident in markets where consumer preferences are driven by trends, lifestyle choices, or specific interests.

The other scenarios do not necessarily increase desirability in the same way. The introduction of superior substitutes might lead consumers to switch away from the original good, seasonal shortages could increase demand temporarily but generally do not improve the desirability of the good itself when prices rise, and negative consumer perception would likely decrease a product’s desirability, regardless of the price.