Question

Which of the following is not a determinant of a consumer's demand for a commodity?

Group of answer choices

Law of Diminishing Marginal Utility

Income

Tastes and Preferences

Population

Answer 1

Answer:

Law of Diminishing Marginal Utility

Explanation:

Demand refers to the volume of a product or service consumers are willing to buy at a given price over time. Demand is high when customers are willing to buy more of a product. Several factors influence the demand levels of a product. They include

• Consumers preferences and tastes
• consumers income
• prices of related goods
• consumer expectation on future prices
• number of consumers in the market
• Income distribution

The law of diminishing marginal returns associates the utility derived from an additional input while holding other factors constant. The law claims that the marginal utility of an input declines as its supply increases. It does not influence the demand for a product in any way.