A change in which variable will change the market demand for a product?
A)the price of the product
B)expected future prices
C)the number of firms in the market
D)the quantity supplied of the product

Question

Quizplus · Accepted Answer

Expected future prices can affect consumers' willingness to buy a product. For example, if people expect the price of a product to increase in the future, they may be more likely to buy it now, increasing the demand. On the other hand, if people expect the price to decrease in the future, they may be less likely to buy it now, decreasing the demand. Changes in the price of the product (A) and quantity supplied (D) will affect the quantity demanded but not the market demand as a whole. The number of firms in the market (C) will affect the supply of the product, not the demand.

A Change in Which Variable Will Change the Market Demand