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 of the product supplied

Question

Quizplus · Accepted Answer

Expected future prices can change the market demand for a product. For example, if consumers expect the price of a product to increase in the future, they may demand more of it now in order to avoid paying a higher price later. Conversely, if consumers expect the price of a product to decrease in the future, they may postpone their purchases in order to take advantage of the lower price later. The other options listed (A, C, and D) all relate to the supply side of the market, not the demand side.

A Change in Which Variable Will Change the Market Demand