Which of the following best describes a reason that consumer demand can change?

• A. A change in the cost of production
• B. A change in government subsidies to firms
• C. A change in consumer income
• D. A change in the number of producers

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.
2. Recognize that factors affecting consumer demand typically include changes in consumer preferences, income, prices of related goods, expectations, and the number of consumers.
3. Analyze each option: a change in the cost of production affects supply, not demand; a change in government subsidies to firms also affects supply; a change in the number of producers affects supply as well.
4. Identify that a change in consumer income directly affects consumers' purchasing power, which shifts the demand curve either to the right (increase) or left (decrease).
5. Conclude that the best reason for a change in consumer demand among the options given is a change in consumer income.