Which of the following are non-price determinants of demand?
A. advertising
B. change in population
C. prices of raw materials
D. production technology
E. future expectation of prices
Answers
Answer:
I think B. is correct answer
Answer:
The correct options for this question are A. advertising, C. prices of raw materials, and E. future expectation of prices.
Explanation:
- Prices of raw materials:
The demand for alternatives can be significantly impacted by price changes. As consumers transition away from the substitute, the price of a near substitute will rise, increasing demand for the product. For instance, if the cost of one brand of gasoline increases, the demand for a different brand is likely to rise.
- Advertising:
Consumer demand can be significantly influenced by effective advertising. Advertising can raise product awareness among consumers and promote purchases.
- Future expectation of prices:
Many products have accessories that are either purchased alongside the main item or are necessary for the product to function. The demand for a product is expected to decline when the cost of complements increases. Joint demand is a situation where complementary things are purchased simultaneously.
Thus, demand is influenced by a number of economic factors besides price. Numerous other non-price factors, sometimes known as underlying determinants, can influence demand.