ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Change in Technology
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Change in Profit Opportunities Producing other Products
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Change in Producers’ Price Expectations
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None of the above
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Detailed explanation-1: -Demand Equation or Function The quantity demanded (qD) is a function of five factors-price, buyer income, the price of related goods, consumer tastes, and any consumer expectations of future supply and price.
Detailed explanation-2: -Any change in these determinants (keeping price constant) shifts the demand curve backward or forward. The change in demand is caused when the price is constant, but the determinants of demand are changing. These factors can shift the demand curve.
Detailed explanation-3: -Determinants of Demand and Supply While the determinants of supply include input prices, technology, number of sellers, and future expectations, demand is determined by other factors. Some of the main determinants of demand include income, price of related goods, expectations, and the number of buyers.
Detailed explanation-4: -The law of supply is the relationship between the quantity supplied and the factors which affect it. The most important determinants of supply are technology, the number of suppliers, expectation of suppliers, feedback from consumers, freeze in tax etc.