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Multiple Choice
Which of the following is a nonprice determinant of the demand for flour?
A
A change in the price elasticity of supply
B
A decrease in the price of flour
C
A change in the price of flour
D
The income of consumers
Verified step by step guidance
1
Understand that nonprice determinants of demand are factors other than the good's own price that cause the demand curve to shift.
Recall that changes in the price of the good itself (flour) cause movements along the demand curve, not shifts of the curve.
Identify that the price elasticity of supply relates to supply, not demand, so it is not a demand determinant.
Recognize that a decrease in the price of flour affects quantity demanded, not the demand curve position.
Conclude that the income of consumers is a classic nonprice determinant of demand because changes in income shift the demand curve for normal or inferior goods.