Tastes and preferences
Quantity supplied
Income
Price of related goods
Answer is Right!
Answer is Wrong!
The correct answer is B. Quantity supplied.
The determinants of demand are the factors that influence the quantity demanded of a good or service. They include:
- Tastes and preferences: People’s tastes and preferences for a good or service can change over time. For example, if people start to prefer healthier foods, the demand for unhealthy foods will decrease.
- Income: The amount of money people have to spend will affect the demand for goods and services. If people have more money, they will be able to buy more goods and services.
- Price of related goods: The demand for a good or service can be affected by the prices of related goods. For example, if the price of a substitute good decreases, the demand for the original good will decrease.
- Expectations: People’s expectations about future prices or income can affect the demand for goods and services. For example, if people expect the price of a good to increase in the future, they may buy more of it now.
- Number of buyers: The number of buyers in a market will affect the demand for a good or service. If there are more buyers, the demand for the good will increase.
Quantity supplied is not a determinant of demand. It is a determinant of supply.