Question:
Which of the following is not a determinant of demand?
(1) The price of a substitute good
(2) The expected price of the good in next month
(3) The price of a complementary good
(4) The price of an input used to produce the good
(5) The income level of consumers
Correct Answer:
(4)
Answer Explanation:
The price of an input used to produce a good affects the cost of production. Therefore, it is a determinant of supply, not a determinant of demand.
Topic: Demand & Supply Year: 2023
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