Examlex

Solved

A Change in Which Variable Will Change the Market Demand

question 57

Multiple Choice

A change in which variable will change the market demand for a product?


Definitions:

Substitution Effect

The change in consumption resulting from a change in relative prices, leading consumers to substitute away from higher-priced goods towards lower-priced ones.

Price Change

An alteration in the cost to purchasers of goods and services over time or in response to supply and demand conditions.

Total Utility

The total satisfaction a consumer gets from consuming a certain quantity of goods or services.

Demand Curves

A graphical representation showing the relationship between the price of a good or service and the quantity demanded by consumers, typically downward sloping.

Related Questions