Question

Which factor will NOT cause a change in demand?
A) an increase in the price of complement in consumption B)a decrease in income C) a decrease in the price of the good itself D) an increase in the number of consumers?

I think all these factors do cause a change in demand

Answer 1

. In this case option C is correct where a decrease in the price of the good itself will not cause a change in demand because there is a basic difference in change in demand and change in quantity demand change in demand is because of other factors then price and change in quantity demanded means the demand changes because of change in its own price therefore in option C a decrease in the price of good itself will not cause a change in demand.

Option a. An increase in the price of complement in consumption comes under the category of various other factors which affect the demand of the commodity because there is and the Inverse relationship between the price and demand of complementary goods.

Option b. It means a decrease in income it also comes under the category of other factors which affect the demand of the commodity a decrease in income means when income changes then there is a change in normal goods and inferior goods.

Option d. An increase in the number of consumers also comes under the category of other factors which affect the demand of the commodity if the number of consumers increases then the demand will increase and vice versa.