Question

The determinants/shifters/non-price factors of demand are:

Answer 1

Answer: consumer's taste and preferences, # of consumers in the market, consumer's income, consumer's expectations, price of related goods (substitutes & compliments).

Explanation:

Some of the non price factors of demand include:

• Consumer taste and preference: When consumer have a preference for a particular product, there's an increase in demand for such product.

• Consumers income: When a consumer has a high income, this will lead to an increase in demand for a product while a person with lower income will make lesser purchases.

• Price of related goods: When there is an increase in price for a product, there'll be an increase in the price of the complement as well and the demand reduces.. On the other hand, when the price of a good increase, the quantity demanded of its substitute rises.

We should note that government actions, and cost of production affects the supply of the good and not the demand.