Multiple Choice
How does fresh water differ from coal as a resource in the context of factors of production?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which of the following is a factor that influences changes in consumer demand?
A
The amount of land available for production
B
Changes in consumer income
C
The number of workers employed by firms
D
The level of technological advancement in production
Verified step by step guidance1
Understand that consumer demand refers to the quantity of a good or service that consumers are willing and able to purchase at various prices.
Recognize that factors influencing consumer demand are those that affect consumers' willingness or ability to buy goods, such as changes in consumer income, tastes, prices of related goods, expectations, and population.
Analyze each option to see if it directly affects consumer demand: the amount of land available, number of workers, and technological advancement primarily affect production, not consumer demand.
Identify that changes in consumer income directly influence consumer demand because when income increases, consumers generally can afford to buy more goods, shifting the demand curve.
Conclude that among the options, 'Changes in consumer income' is the factor that influences changes in consumer demand.
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