An example of a demand shifter is:
A) factor prices.
B) technology.
C) consumer preferences.
D) producer expectations.
Ans: C) consumer preferences.
Economics
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Economics
When the price of a good changes, the total effect of the price change on the quantities purchased can be found by comparing the quantities purchased
A) on the old budget line and the new budget line. B) on the original indifference curve when faced with the original prices and when faced with the new prices. C) on the new budget line and a hypothetical budget line that is a parallel shift back to the original indifference curve. D) on the new indifference curve.
Economics