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Multiple Choice
Which of the following is a non-price determinant of demand?
A
Consumer income
B
The price of the good itself
C
Marginal cost of production
D
Quantity supplied
Verified step by step guidance
1
Understand that non-price determinants of demand are factors other than the good's own price that cause the demand curve to shift either to the right (increase in demand) or to the left (decrease in demand).
Recall the main non-price determinants of demand, which typically include consumer income, tastes and preferences, prices of related goods (substitutes and complements), expectations about future prices or income, and the number of buyers.
Analyze each option given: 'Consumer income' affects consumers' ability to buy goods, so it is a classic non-price determinant of demand.
'The price of the good itself' is the price variable, which causes movement along the demand curve, not a shift of the curve.
'Marginal cost of production' and 'Quantity supplied' relate to supply-side factors, not demand, so they are not determinants of demand.