ECONOMICS
PRICE CEILINGS AND FLOORS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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tastes/preferences
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income
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number of sellers
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number of buyers
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Detailed explanation-1: -Price is not a determinant of demand, thus a change in price does not cause demand to increase or decrease.
Detailed explanation-2: -Consumer’s Income. Price of Related Goods. Tastes and Preferences of Consumers. Consumer’s Expectations.
Detailed explanation-3: -Answer and Explanation: Income is not a determinant of supply.
Detailed explanation-4: -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-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.