Sia
Question
Microeconomics
Posted 8 months ago
All of the following influence whether a consumer buys more of a good EXCEPT:
Choose 1 answer:
(A) a change in the good's price
(B) how much other goods cost
(c) how much the consumer previously spent on the good
D whether or not it is legal to buy more of the good
(E) how much income the consumer has to spend
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Answer from Sia
Posted 8 months ago
Solution
a
Change in Good's Price: A change in the price of a good directly affects the quantity demanded according to the law of demand
b
Cost of Other Goods: The prices of substitute or complementary goods can influence a consumer's decision to buy more or less of a good
c
Previous Spending: How much a consumer previously spent on a good does not influence their current decision to buy more of it
d
Legality: Whether or not it is legal to buy more of a good can affect consumer behavior, as illegal goods are less likely to be purchased
e
Income: The amount of income a consumer has determines their purchasing power and ability to buy more of a good
Answer
(C) how much the consumer previously spent on the good
Key Concept
Factors Influencing Consumer Buying Behavior
Explanation
The amount a consumer previously spent on a good does not affect their current decision to buy more of it. Other factors like price changes, the cost of other goods, legality, and income are more influential.
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