All of the Following Will Affect the Position of the Demand

question 255

Multiple Choice

All of the following will affect the position of the demand curve EXCEPT

• A) income.
• B) taste and preference.
• C) changes in expectations of future relative prices.
• D) prices of resources used to produce the product.

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Definitions:

Entrepreneurs

Individuals who, rather than working as employees, run a business and assume all the risks and rewards of a given business venture, idea, or good or service offered for sale.

Allocative Efficiency

A state of resource distribution where resources are allocated in a way that maximizes the total benefit received by all members of society.

Purely Competitive Industry

An industry characterized by many small firms producing identical products, where no single firm can influence the market price.

Demand

The volume of goods or services that consumers are prepared and financially able to buy at a range of prices within a set period.