ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Price
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Income
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Trends and preferences
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Number of sellers
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Detailed explanation-1: -Increase in capital goods is not a factor in demand.
Detailed explanation-2: -The demand for a good increases or decreases depending on several factors. This includes the product’s price, perceived quality, advertising spend, consumer income, consumer confidence, and changes in taste and fashion.
Detailed explanation-3: -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-4: -Own price of the given commodity: Own price is the most important determinant of demand. When the price of a commodity falls, its demand rises and when its price rises, its demand falls.
Detailed explanation-5: -Tastes and Preferences of the Consumers: Incomes of the People: Changes in the Prices of the Related Goods: The Number of Consumers in the Market: Changes in Propensity to Consume: Consumers’ Expectations with regard to Future Prices: Income Distribution: