Skiers flock to a town in the Rockies in January, and restaurant business booms. What factor is affecting demand? income market size consumer taste substitutes

## Step 1<br />The problem presents a scenario where skiers flock to a town in the Rockies in January, leading to a boom in the restaurant business. The question asks us to identify the factor affecting demand in this situation.<br /><br />## Step 2<br />The options provided are income, market size, consumer taste, and substitutes. We need to analyze each option in the context of the given scenario.<br /><br />## Step 3<br />Income: This refers to the amount of money that consumers have available to spend. In this case, the skiers are not necessarily spending more money than usual, so income is not the primary factor affecting demand.<br /><br />## Step 4<br />Market size: This refers to the number of potential customers in a market. In this case, the market size is not changing, as the number of skiers is not increasing or decreasing.<br /><br />## Step 5<br />Consumer taste: This refers to the preferences and desires of consumers. In this case, the skiers' preference for skiing in the Rockies in January is causing an increase in demand for restaurants.<br /><br />## Step 6<br />Substitutes: This refers to other goods or services that can replace a particular good or service. In this case, there is no mention of any substitutes for skiing in the Rockies.<br /><br />## Step 7<br />Based on the analysis, the factor affecting demand in this scenario is consumer taste.