Problemas
A factory closes, laying off hundreds of workers, and consumer spending in the town falls. What factor is affecting demand? consumer expectation consumer taste income substitutes
Roztwór
Julio
élite · Tutor durante 8 años
4.6
(247 Votos)
Respuesta
The factor affecting demand in this case is 'income'.
Explicación
## Step 1The problem presents a situation where a factory closes, leading to a decrease in consumer spending in the town. The question asks us to identify the factor that is affecting demand.## Step 2The options provided are consumer expectation, consumer taste, income, and substitutes. We need to analyze each option in relation to the given situation.## Step 3Consumer expectation refers to the future expectations of consumers about the market. This doesn't seem to be the primary factor affecting demand in this case.## Step 4Consumer taste refers to the preferences of consumers. This also doesn't seem to be the primary factor affecting demand in this case.## Step 5Income refers to the earnings of consumers. In this case, the factory closure leads to a decrease in income for the workers who were laid off. This decrease in income would lead to a decrease in consumer spending, which is the situation described in the problem.## Step 6Substitutes refer to other goods that can replace a particular good. This doesn't seem to be the primary factor affecting demand in this case.