Managerial Economicsintermediate
Select ALL determinants identified in the course material that can shift demand.
Answer
Consumer income, Consumer tastes, Prices of substitutes
Explanation
### Why this is right
- **Consumer income** can change how much buyers can and want to purchase at each price.
- **Consumer tastes** can change the appeal of a product and shift demand.
- **Prices of substitutes** can change demand for the product as buyers switch between alternatives.
### The concept
A shift means demand changes at each possible own price. The good’s own price instead changes quantity demanded along the existing curve. Prices of complements can also affect demand, though that option is not listed here.
### The other options
- **The good's own price**: this causes movement along the demand curve rather than a shift of the curve.
### Terms
- **Substitute**: a good that can be used in place of another.
### Remember
Income, tastes, and related-good prices shift demand; own price changes quantity demanded.
Related Questions
- Which description best defines managerial economics?(basic)
- Under the SMARTTS framework, an objective with a stated deadline is _____.(basic)
- An increase in income always moves a consumer to a different point on the same demand curve.(intermediate)
- A price above equilibrium creates excess demand and tends to push price upward.(basic)
- What does a production function represent?(basic)
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