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QuizMultiple Choice

The Law of Supply and Demand

Question 1 • 2102320-Economics HONORS - Edgenuity Teacher

A factor that most directly affects the demand for automobiles is

Answer
A
the individual tastes and preferences of buyers.
B
the cost of raw materials and natural resources.
C
the availability of workers in automobile factories.
D
a company's ability to respond to buyers' interest.

Explanation

Demand describes how much consumers are willing and able to buy at different prices. Buyers’ tastes and preferences directly affect their desire for automobiles, while raw-material costs, factory labor availability, and a company’s ability to respond to interest mainly affect supply.

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