Which of the following factors affect demand?
Income, tastes, and preferences
Cost of production, government policies, and technology
Availability of raw materials, transportation costs, and taxes
All of the above
Which of the following is not a factor affecting demand?
Availability and price of substitutes
Consumer preferences and tastes
Which of the following is an example of a government policy that can affect demand?
Tax on cigarettes
Release of a new iPhone model
A celebrity endorsement of a product
None of the above
What are the three factors that affect demand? Explain how each factor affects demand.
Three factors that affect demand include:
Income of the consumer: The higher the income of consumers, the higher the demand for most goods and services.
Price of substitutes: The availability and lower price of substitutes can decrease the demand for a particular good or service.
Consumer preferences: Consumer preferences and tastes heavily influence the demand for goods and services.