Which of the following is a non-price determinant of demand?

Prepare for the RECA Commercial Exam. Study with flashcards and multiple choice questions, with hints and explanations. Be exam-ready!

The correct choice relates to a fundamental concept in economics regarding the factors that influence demand for goods and services. A non-price determinant of demand refers to any factor that can lead to a shift in the demand curve, aside from the price of the goods or services themselves.

The consumer's disposable income plays a crucial role in determining demand because it reflects the amount of income that consumers have available to spend after taxes. When disposable income increases, consumers generally have more money to spend, which can lead to an increase in the quantity demanded for goods and services. Conversely, if disposable income decreases, demand may fall as consumers cut back on spending.

Understanding this concept is key for recognizing how demand is influenced by external factors unrelated to pricing. Other choices such as producer's expectations, supply of goods, and cost of production relate more to supply-side concerns or factors that might influence how much can be produced or how producers respond to market signals, rather than directly influencing consumer demand. Thus, the consumer's disposable income is indeed the non-price determinant affecting demand in this context.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy