Which of the following is a determinant of consumer demand?
A)expectation of the future relative price of a product
B)taxes imposed on firms that sell the product
C)cost of inputs used to produce the product
D)number of firms that produce the product

Question

Quizplus · Accepted Answer

Expectation of the future relative price of a product is a determinant of consumer demand as it affects consumers' willingness to buy now or wait for a price change. This is because consumers tend to buy more of a product when they expect its price to rise in the future, and vice versa.

B, C, and D are not determinants of consumer demand. Taxes imposed on firms that sell the product will affect the price of the product, which will, in turn, affect consumer demand but it is not a determinant of consumer demand. Cost of inputs used to produce the product and the number of firms that produce the product are determinants of supply.

Which of the Following Is a Determinant of Consumer Demand