Correct option is D
Correct Answer: (D) Taste and preference of seller
Explanation:
Taste and preference of the seller is NOT a determinant of demand. The demand for a good or service is influenced by the preferences and tastes of the consumers, not the seller. The seller's personal taste or preference does not affect the market demand directly.
Information Booster:
- Thedeterminants of demandrefer to the factors that cause a shift in the demand curve for a product.
- These factors include:
- Income of consumers:As income rises, consumers may demand more goods and services.
- Price of goods:The price of a good or service itself influences its demand. Typically, as price increases, demand decreases (law of demand).
- Future expectation of price changes:If consumers expect the price of a good to rise in the future, they might purchase more of it now, increasing current demand.
- Taste and preference of consumers:Changes in consumer tastes or preferences can lead to an increase or decrease in demand for a particular good or service.
Additional Information:
- Future expectation to change in price: This is a correct determinant of demand, as consumer purchasing decisions can be affected by expectations of future price changes.
- Income of consumer: This directly affects demand, as higher income leads to higher demand for goods and services.
- Price of goods: The price of goods and services is a fundamental determinant of demand according to the law of demand.
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