Question

List and describe the determinants of demand that would explain the shift above

Answer 1

Answer:

The increase in the price of the product, the decrease in the consumer's income, a change in consumer preference.

Explanation:

As you can see in the chart above, there was a decrease in demand for a specific product. This decrease may have been caused by several factors, which are called determinants. Among the main determinants we can highlight the increase in the price of the product (which can make consumers feel unmotivated to buy the product and prefer not to consume it to paying more), the decrease in the consumer's income (the consumer has less money and therefore need to stop buying some products), changes in consumer preference (occurs when the consumer meets a competitor of the product that has a better price or quality).