Which of the following is a nonprice determinant of demand?

• A. Quantity supplied
• B. Consumer income
• C. Marginal cost of production
• D. The price of the good itself

Answer: (B)

Verified step by step guidance

1. Step 1: Understand the concept of demand and its determinants. Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices during a given period.
2. Step 2: Recognize that price is one determinant of demand, but there are other factors, called nonprice determinants, that can shift the demand curve either to the right (increase) or left (decrease).
3. Step 3: Identify common nonprice determinants of demand, which include consumer income, tastes and preferences, prices of related goods (substitutes and complements), expectations about future prices or income, and the number of buyers.
4. Step 4: Analyze each option: Quantity supplied is related to supply, not demand; Marginal cost of production affects supply decisions; The price of the good itself affects quantity demanded (movement along the demand curve), not demand (shift of the curve); Consumer income is a classic nonprice determinant of demand because changes in income shift the demand curve.
5. Step 5: Conclude that among the options given, consumer income is the nonprice determinant of demand.