Which of the following is NOT a determinant of demand (i.e., does NOT shift the demand curve) for a good?

• A. Tastes and preferences
• B. The good’s own price
• C. Prices of related goods (substitutes or complements)
• D. Consumer income

Answer: (B)

Verified step by step guidance

1. Understand that a determinant of demand is a factor that causes the entire demand curve to shift either to the right (increase in demand) or to the left (decrease in demand).
2. Recall that the good's own price does NOT shift the demand curve; instead, it causes a movement along the demand curve, known as a change in quantity demanded.
3. Identify the common determinants of demand that do shift the demand curve: tastes and preferences, prices of related goods (substitutes or complements), and consumer income.
4. Compare each option to these determinants: tastes and preferences, prices of related goods, and consumer income all shift the demand curve, while the good's own price only changes the quantity demanded along the curve.
5. Conclude that the good's own price is NOT a determinant of demand because it does not shift the demand curve but causes movement along it.