Which factor most influences changes in consumer demand?

• A. Competition
• B. Quantity
• C. Price
• D. Quality

Answer: (C)

Verified step by step guidance

1. Understand that consumer demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices over a period of time.
2. Recall the Law of Demand, which states that, ceteris paribus, as the price of a good decreases, the quantity demanded increases, and vice versa.
3. Recognize that among the options given (Competition, Quantity, Price, Quality), price directly affects the consumer's willingness and ability to buy a product, thus influencing demand.
4. Note that 'Quantity' is a result of demand at a given price, not a factor that influences demand itself.
5. Conclude that price is the primary factor influencing changes in consumer demand because it directly affects consumers' purchasing decisions according to microeconomic theory.