Briefly discuss the determinants of demand other than price
What will be an ideal response?
An increase in income causes demand of a normal good to increase and demand of an inferior good to decrease. An increase in the price of a related good causes demand to increase if the two goods are substitutes and causes demand to decrease if the two goods are complements. An increase in population causes demand to increase. Demand increases if consumers develop more of a preference for the good. Expectations about the future also matter. If consumers think the price will increase in the future, current demand increases.
You might also like to view...
A ________ pays the owner a fixed coupon payment every year until the maturity date, when the ________ value is repaid
A) coupon bond; discount B) discount bond; discount C) coupon bond; face D) discount bond; face
Another way to describe the growth rate of spending is:
A. the growth rate of real GDP. B. the growth rate of nominal GDP. C. the growth rate of the velocity of money. D. the growth rate of the money supply.
The demand for labor curve is identical to the:
A. marginal revenue curve. B. marginal resource curve. C. total revenue curve. D. marginal revenue product curve.
The Glass-Steagall Act of 1933 separated commercial banks from most of their securities business
Indicate whether the statement is true or false