Which of the following factors does NOT cause a change in demand?*1 pointA. Taste and fashionB. Vagaries of weatherC. Price of other commoditiesD. Price of the commodity
Question
Which of the following factors does NOT cause a change in demand?*1 pointA. Taste and fashionB. Vagaries of weatherC. Price of other commoditiesD. Price of the commodity
Solution
To determine which of the factors does NOT cause a change in demand, we need to analyze each option.
A. Taste and fashion: Changes in taste and fashion can definitely influence the demand for a commodity. For example, if a particular style becomes popular, the demand for clothing items that match that style may increase. Therefore, this factor can cause a change in demand.
B. Vagaries of weather: Weather conditions can have a significant impact on the demand for certain goods. For instance, during hot summer months, the demand for ice cream and cold beverages tends to increase. So, the vagaries of weather can cause a change in demand.
C. Price of other commodities: The price of other commodities can affect the demand for a particular product. For instance, if the price of a substitute good decreases, consumers may switch to that alternative, leading to a decrease in demand for the original product. Therefore, this factor can cause a change in demand.
D. Price of the commodity: The price of the commodity itself is a major determinant of demand. When the price of a product increases, the demand for it usually decreases, and vice versa. So, changes in the price of the commodity can cause a change in demand.
Based on the analysis, the factor that does NOT cause a change in demand is D. Price of the commodity.
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