Which of the following influences people's buying plans and varies moving along a demand curve? a) preferences b) the price of the good c) income d) the prices of the related goods?

Question

Answer

Actually they all influence people behaviour for buying something,but here they are saying which do movement on demand curve,and it is only price,bcz by all other things shifting of demand curve occurs

Answer

B because when there os any change in taste or preference or price of related goods there will be shift in the demand but when there is a change in price there will be a movement along the demand curve

Answer

The answer is B. But I need an explanation.

Answer

Preferences:
People's preferences play a significant role in influencing their buying plans and can cause variations along a demand curve. Preferences refer to the individual's subjective evaluation of a good or service, based on factors such as taste, style, quality, and personal satisfaction. These preferences can change over time, leading to shifts in demand.

- Taste: Changes in taste and fashion trends can lead to shifts in buying plans. For example, if a particular style of clothing becomes popular, the demand for that style will increase, resulting in a shift in the demand curve to the right.

- Quality: Consumers may change their buying plans based on their perception of the quality of a product. If a product is perceived to be of higher quality, the demand for it may increase, causing a shift in the demand curve.

Price of the Good:
The price of a good or service is another crucial factor that influences people's buying plans and generates movement along a demand curve. The law of demand states that as the price of a good increases, the quantity demanded decreases, and vice versa. Therefore, changes in the price of a good will result in movements along the demand curve.

- Price Increase: When the price of a good increases, consumers may reduce their buying plans as they find the product less affordable. This leads to a movement upwards along the demand curve, representing a decrease in quantity demanded.

- Price Decrease: Conversely, when the price of a good decreases, consumers may increase their buying plans as the product becomes more affordable. This results in a movement downwards along the demand curve, representing an increase in quantity demanded.

Income:
People's income levels also impact their buying plans and can lead to variations along a demand curve. Income influences the purchasing power of individuals and determines their ability to buy goods and services.

- Income Increase: If people's income increases, they are likely to have more disposable income available for spending. This can lead to an increase in their buying plans and a shift in the demand curve to the right.

- Income Decrease: On the other hand, if people's income decreases, they may have less disposable income, resulting in a decrease in their buying plans. This leads to a shift in the demand curve to the left.

Prices of Related Goods:
The prices of related goods also influence people's buying plans and cause variations along a demand curve. Related goods can be classified into two categories: substitutes and complements.

- Substitutes: Substitutes are goods that can be used in place of each other, such as different brands of the same product or alternative products that serve a similar purpose. If the price of a substitute good decreases, consumers may switch their buying plans from the original good to the substitute, leading to a movement along the demand curve.

- Complements: Complements are goods that are typically consumed together, such as coffee and cream. If the price of a complement good decreases, consumers may increase their buying plans for both goods, resulting in a movement along the demand curve.

In conclusion, people's preferences, the price of the good, income levels, and the prices of related goods all influence their buying plans and cause variations along a demand curve. These factors can lead to shifts in

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