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Which one of the following does not influence the quantity demanded for a good?
Prices of inputs into the production of the good.
Price of a substitute good.
Price of a complementary good.
Good's price.
Option a is correct One of the basic and the most important factor for the demand for a product is its price of it. The law of demand states that when the price of the product goes higher the demand falls and when the price of a product goes down the demand increases. The demand for a product is also influenced by the price of the related good. If the price of the related goods goes down the demand for the product may also go down. The choice of manufacturer sometimes affects the demand for a product. Some people are very loyal to their brands and what not like to switch to another product even if the price of related goods goes down. The five determinants of demand are: • The price of the good or service • The income of buyers • The prices of related goods or services— either complementary and purchased along with a particular item, or substitutes bought instead of a product • The tastes or preferences of consumers will drive demand • Consumer expectations about whether prices for the product will rise or fall in the future
By: Parvesh Mehta ProfileResourcesReport error
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