Which of the following is NOT a component of demand?

• A. The price of the good
• B. The income of consumers
• C. The cost of production
• D. The quantity consumers are willing to buy

Answer: (C)

Verified step by step guidance

1. Step 1: Understand the concept of demand in microeconomics. Demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices over a given period of time.
2. Step 2: Identify the components that affect demand. These typically include the price of the good itself, consumer income, tastes and preferences, prices of related goods (substitutes and complements), and consumer expectations.
3. Step 3: Recognize that the cost of production is not a component of demand. Instead, it is a factor that affects supply, as it influences how much producers are willing to produce at different prices.
4. Step 4: Review the options given: 'The price of the good', 'The income of consumers', and 'The quantity consumers are willing to buy' are all related to demand, while 'The cost of production' relates to supply.
5. Step 5: Conclude that the correct answer is 'The cost of production' because it does not directly affect the demand curve but rather the supply curve.