A change in the quantity demanded of a product is the result of a change in __________.
the price of the product
the price of related goods
consumer income
the cost of producing the product
I say the 3rd
I'm not an economist, but this seems a silly question.
A change in the quantity demanded could be any or all of those, plus
a better product on the market
the obsolescence of a product
True
Price of a good 👍🏻
To determine which factor causes a change in the quantity demanded of a product, we need to consider the concept of demand. The quantity demanded is the amount of a product that consumers are willing and able to purchase at a given price.
In this case, you are correct. A change in consumer income, the 3rd option, can indeed result in a change in the quantity demanded of a product. When consumer income increases, people typically have more money to spend, which can lead to an increase in their purchasing power and ultimately affect their demand for various goods and services.
However, it's important to note that all the options listed can influence the quantity demanded of a product to some extent. Let's briefly explain how each of the options could impact demand:
1. The price of the product: A change in the price of a product directly affects its quantity demanded. According to the law of demand, when the price of a product increases, the quantity demanded tends to decrease, and vice versa.
2. The price of related goods: The price of complementary goods or substitute goods can also influence the quantity demanded. For example, if the price of a complementary good (e.g., hot dog buns for hot dogs) increases, it might reduce the demand for the primary product (e.g., hot dogs). Conversely, if the price of a substitute good (e.g., hamburgers) increases, it might increase the demand for the primary product (e.g., hot dogs).
3. Consumer income: As mentioned earlier, a change in consumer income can impact the quantity demanded. When people's income rises, they generally have more disposable income to spend on various products, which can increase their demand. On the contrary, a decrease in income may lead to a decrease in demand.
4. The cost of producing the product: While the cost of producing a product does not directly influence the quantity demanded, it can indirectly affect it. For example, if the cost of production decreases, companies might be able to offer the product at a lower price, leading to an increase in demand.
In summary, while all the options listed can potentially affect the quantity demanded of a product, in this case, you are correct that a change in consumer income can result in a change in the quantity demanded.