Non-Price Determinants of Demand Quiz

How does a favorable change in consumer tastes and preferences affect demand?

Increases demand

What happens to demand when there is an increase in the number of consumers in the marketplace?

Increases demand

How does an increase in consumer income impact demand?

Increases demand

Explain the effect of a decrease in consumer income on demand.

Decreases demand Signup and view all the answers

What is the impact of a decrease in the number of consumers in the marketplace on demand?

Decreases demand Signup and view all the answers

How do prices of related goods affect demand?

Depends on whether they are substitutes or complements Signup and view all the answers

What is Unrelated Goods in terms of demand?

A change in the price of one product has little or no effect on the demand for the other product. Signup and view all the answers

How do changes in customers' expectations affect demand?

An expectation of a higher future price increase may cause consumers to buy more of a specific product, thus increasing current demand. Signup and view all the answers

What is the non-price determinant of supply related to the price of resources?

The cost of production incurred by the firm is determined and affected by the prices of the resources used in the production process. Signup and view all the answers

How does technology impact supply?

Latest development and advancement in technology enable firms to produce more units of output, leading to lower production costs. Signup and view all the answers