Question

As a student, consider the determinants of demand (e.g. tastes and preferences, income, price of related goods, future expectations on price). What two determinants would most impact your decision to continue to “purchase” education and why?

Answer 1

• If we talk about the demand then some of the determinants that causes a change in demand are-

1. Presence of substitutes or complements in the market
2. Income level of consumers
3. Expectation level of consumers
4. Taste and preferences of the consumers

• In the market , from the perspective as a student the two most important determinants would be.

1. Expectation level of consumer- If as a student I am thinking that in near future by having more education and knowledge in particular subject I will get a better job or a better growth opportunity then I will do this course or curriculum in a serious way and due to this my demand for book and all other related educating stuff will increase
2. Taste and preferences- It is the second most important thing because what is my choice over other subject in which I am confident that I will do something better in the future

• whether it is from the job, family or marriage perspective etc