GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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1.change in income
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2.change in price
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3.change in fashion
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4. 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: -Thus, changes in non-price factors shift the demand curve and change the quantity for any given price combination. When quantity increases, for example, due to an increase in income, the curve shifts to the right, showing more demand for each price combination.
Detailed explanation-3: -Change in Taste and Preferences. Population Increase or Decrease. Price Change of a Related Good. Change in the Expected Future Prices. Change in the Income Level of Buyers. 14-Jan-2022
Detailed explanation-4: -Changing tastes or preferences. Changes in the composition of the population. Related goods. Changes in expectations about future prices or other factors that affect demand.
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.