Some Nonprice Determinants of Demand Are

question 33

Multiple Choice

Some nonprice determinants of demand are:

• A) consumer preferences, expectations of future prices, and the number of buyers in the market.
• B) consumer preferences, the price of the good, and incomes.
• C) incomes, expectations of future prices, and the number of sellers in the market.
• D) prices of related goods, knowledge of past prices, and the number of buyers in the market.

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Definitions:

Highly Inelastic

Describes a situation where demand or supply shows little to no response to changes in price, often due to the lack of close substitutes.

Highly Elastic

Describes a market situation where demand or supply of a good or service is very sensitive to changes in price.

Excise Tax

A tax imposed on the sale of specific goods and services, such as fuel, tobacco, and alcohol.

Burden

The negative impact, stress, or obligation imposed by a situation, decision, or policy.