Which is NOT a determinant of demand?

Which is NOT a determinant of demand?

• A. A change in technology
• B. A BOGO sale
• C. Consumer income
• D. Tastes and preferences

Answer: (A)

Demand is driven by factors that change how much people want to buy at every price, such as consumer income, tastes and preferences, prices of related goods, expectations about the future, and the number of buyers. A change in technology, however, mainly affects production—costs and efficiency—which shifts the supply side, not the demand side. So it isn’t a determinant of demand because it alters how much is offered at each price rather than how much buyers want to purchase at that price. A BOGO sale changes buying incentives and can increase the quantity demanded at the given price in the short run, since buyers perceive more value or lower effective price. But it’s a promotional condition, not a fundamental, long-run driver of demand like income or tastes. Therefore the option that does not belong as a determinant of demand is the change in technology.

Demand is driven by factors that change how much people want to buy at every price, such as consumer income, tastes and preferences, prices of related goods, expectations about the future, and the number of buyers. A change in technology, however, mainly affects production—costs and efficiency—which shifts the supply side, not the demand side. So it isn’t a determinant of demand because it alters how much is offered at each price rather than how much buyers want to purchase at that price.

A BOGO sale changes buying incentives and can increase the quantity demanded at the given price in the short run, since buyers perceive more value or lower effective price. But it’s a promotional condition, not a fundamental, long-run driver of demand like income or tastes. Therefore the option that does not belong as a determinant of demand is the change in technology.