CLEP Microeconomics Exam Prep

Category - Microeconomics

According to a demand curve, the prices of goods and services are determined given quantities. The following are determinants of consumer demand except:
  1. Consumer tastes
  2. Availability of substitute goods
  3. Distribution of income
  4. Market speculation
Explanation
Answer - D - Market speculation is not a determinant of consumer demand.

Key Takeaway: Consumer demand curves are used to illustrate how much of goods and services will be demanded by consumers at any given price. Among the determinants of consumer demand are tastes, the availability of substitute goods, and distribution of income. All of these factors determine movements along and shifts in the demand curve.
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