Question

When estimating demand, price is not the only factor to be considered. Three other elements are emphasized by economists, one of which is____.

Answer 1

Answer:

consumer income

Explanation:

The last of these factors that need to be considered is consumer income. This is a fairly simple one since, whether or not an individual customer/consumer can buy the product that you are offering, depends on whether or not they can afford it. This is all determined by their income. If the consumer population's average income increases then there will be more individuals with extra money that they can go and spend on such products like the one that you are selling. But the opposite can also happen where consumer average income decreases and there is less money for such purchases which means less demand.