What Happens to the Demand Curve When a Non-Price Determinant

question 61

Multiple Choice

What happens to the demand curve when a non-price determinant of demand changes?

• A) The demand curve shifts to the left or to the right.
• B) There is a movement along the demand curve.
• C) The consumer moves to a different price point.
• D) The demand curve does not change when a non-price determinant of demand changes.

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Definitions:

Limited Liability

An advantage of the corporate form. Stockholder liability for the actions of a company is limited to the value of the stock. That is, a suit against the corporation cannot be made against a stockholder simply because the stockholder is an owner.

Proprietorships

A type of business entity that is owned and operated by a single individual, without any legal distinction between the owner and the business.

Sole Proprietor

An individual who owns and operates a business alone, bearing unlimited liability for the business's debts and obligations.

Ease Of Formation

The relative simplicity or complexity involved in establishing a new company or business entity.