The level of effective demand for a product does not depend on:
A) Customer incomes
B) The cost of inputs
C) The price of competitor's products
D) The number of substitutes within the market

Question

Quizplus · Accepted Answer

The level of effective demand for a product is determined by factors that directly affect the consumer's ability and willingness to buy, such as customer incomes, the price of competitor's products, and the number of substitutes within the market. The cost of inputs is a factor that affects the supply side, not the demand side.

The Level of Effective Demand for a Product Does Not