Question

Choose that all apply. What are the determinants of demand that shift the demand curve?

Select one or more: a. Consumer Income b. Input Price c. Tax d. Price of substitue goods

Answer 1

Determinants are those factors which causes shift of demand curve

The curve shifts can shift either left or rightwards.

The factors that cause a shift of demand curve can be-

Income level of a consumer

Presence of substitutes in the market

Taste and preferences

Expectation level of consumers

Input price will affect the supply curve because if input price rises then supply will produce less and this will cause the shift of supply curve to the left

Similarly goes with the tax

If more tax imposed on the sellers then they will produce less

So the answer here are options A and D