ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Change in income
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Change in price
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Change in fashion
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Change in prices of substitutes
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Detailed explanation-1: -The following are causes of shift in demand EXCEPT the onea)Change in incomeb)Change in pricec)Change in fashiond)Change in prices of substitutesCorrect answer is option ‘B’.
Detailed explanation-2: -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. As these factors change, so too does the quantity demanded.
Detailed explanation-3: -The income of the consumer increases. Cost of the substitute goods increases. Prices of the complementary goods decreases. Taste and preferences of the consumers increases.
Detailed explanation-4: -Price of the Product. The Consumer’s Income. The Price of Related Goods. The Tastes and Preferences of Consumers. The Consumer’s Expectations. The Number of Consumers in the Market.
Detailed explanation-5: -Price of product. The single-most impactful factor on a product’s demand is the price. Tastes and preferences. Consumer’s income. Availability of substitutes. Number of consumers in the market. Consumer’s expectations. Elasticity vs. inelasticity.