An Increase in Which of the Following Determinants of Demand

question 64

Essay

An increase in which of the following determinants of demand will have an ambiguous (uncertain) effect on price?
A.tastes and preferences
B.price of a substitute
C.price of a complement
D.income

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Definitions:

Sample Information

Information or data collected from a subset of a larger population, used to infer characteristics or parameters of the whole population.

Expected Monetary Value

A decision-making tool used to determine the average outcome of a set of uncertain possibilities, taking into account the probability and monetary value of each outcome.

Perfect Information

A situation in which all participants have access to all relevant information in a market or decision-making situation.

Prior Probabilities

The probabilities of possible outcomes based on existing knowledge before the arrival of new evidence.