Determinant of Demand

Determinate for Headline #3: Price of Foreign Autos Drop

• Income

• Complements

• Substitutes

• Expectations

• Tastes and Preferences

Answer explanation

Determinate for Headline #5: Price of US Autos Rises

• Tastes and Preferences

• Substitutes

• Number of Buyers

• Expectations

• Price (No change in Demand, just quantity demanded)

Answer explanation

Determinate for Headline #6: Price of US Autos Expected to Rise Soon

• Expectations

• Tastes and Preferences

• Income

• Substitutes

• Price (no change in demand--just quantity demanded)

Answer explanation

Determinate for Headline #8: US Auto Firms Launch Effective Ad Campaigns

• Tastes and Preferences

• Expectations

• Income

• Number of Buyers

• Substitutes

Answer explanation

If the Quantity Demanded for lipstick is HIGH at $4.66 but then the Prices go up to $8.99, what will happen to the Quantity Demanded for lipstick? (a)  

• It will increase

• It will stay the same

• It will not change

• It will decrease

Determinant for Headline #1: Increase in Consumer Income

• A) Income

• B) Substitutes

• C) Complements

• D) Expectations

Determinant for Headline #2: Price of Complementary Goods Increases

• A) Income

• B) Substitutes

• C) Complements

• D) Tastes and Preferences

Determinant for Headline #3: New Technology Reduces Production Costs

• A) Number of Buyers

• B) Expectations

• C) Income

• D) Price (No change in Demand, just quantity demanded)

Determinant for Headline #4: Population Growth in Urban Areas

• A) Number of Buyers

• B) Income

• C) Substitutes

• D) Complements

Determinant for Headline #5: Seasonal Change Increases Demand for Winter Clothing

• A) Tastes and Preferences

• B) Income

• C) Expectations

• D) Number of Buyers