Economists

Question

Economists

Quizplus · Accepted Answer

Economists recognize that tastes have an important impact on demand. Consumer preference for a good or service can significantly affect the quantity demanded and the price that consumers are willing to pay for it. However, economists cannot say a great deal about the origin of tastes, and tastes cannot cause a movement along the demand curve. Consumers' income expectations are influenced by factors such as their income level, job security, and expectations about the future economy, rather than their tastes. The number of consumers in a market can affect demand for a good or service, but this is due to changes in the quantity demanded, not changes in tastes.