GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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price of product
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price of close substitute
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change in climatic conditions
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state of production technology
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Detailed explanation-1: -The production technology does not affect the demand of a product. One of the basic and the most important factor for the demand for a product is the price of it. The law of demand states that when the price of the product goes higher the demand falls and when the price of a product goes down the demand increases.
Detailed explanation-2: -The price of related goods and consumer income do not directly affect the demand curve.
Detailed explanation-3: -Answer and Explanation: Technological improvements in production is not a determinant of demand.
Detailed explanation-4: -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.