Question: Which Of The Following Will Not Cause The Demand For Product K To Change?
A). a change in the price of close-substitute product J
B). a change in the price of K
C). an increase in consumer incomes
D). a change in consumer tastes
Correct Answer: a change in the price of K
Detailed Explanation Of “Which Of The Following Will Not Cause The Demand For Product K To Change?”
A change in the price of k will not cause the demand for product k to change at any cost. Therefore, you need to understand that price is not only the factor that affects the quantity demanded.
Modifications in factors such as preferences and average income can cause a complete demand curve to shift from right to left.
When the demand for a certain product increases, income increases significantly. Then, people also began to buy fewer products due to an increase in price. Therefore, this is the reason why a change in the price of K does not cause the demand for product k to change.
What Factors Affect Demand?
In a simple term, demand is the increase in the price of certain products whose value rises. The price of related goods also affects demand too. Moreover, income is vital because it highlights the ability to purchase.
For example, the more family members a family has, the greater requirement of food and other resources. This is directly proportional to each other. This is the relationship between the two that you need to understand at the earliest.
How Does Income Affect Demand?
As already discussed above, when the demand for a certain product increases, its price also increases significantly. A shift in the cost of a service or goods causes a movement along a particular demand curve, and it mostly tends to some change in the quantity required, but it does not change the demand curve.
All individuals have a serotonin salary and it varies from person to person that you need to understand.
Thus, an increase in demand leads to a decrease in income and vice versa. At the same time, when income rises without a change in price, consumers are able to purchase more goods at the same cost.
The Final Thoughts
The answer to your question “which of the following will not cause the demand for product k to change?” is a change in the price of k. This is all about the demand and income of a product that you need to consider while analyzing things from your perspective.
Nisha Jaiswal is a Traveler by passion and a Content Writer by profession. She is one of the Content Editors at FollowTheFashion, OnlineHealthMedia, ContentRally, etc. She loves to write articles on Fashion, Beauty, Health, Tech, and much more. She is also a freelance writer who writes SEO friendly content.