8
lesson pretestMultiple Choice

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Question 8 • Economics

A factor that most directly affects the demand for automobiles is

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

Explanation

Demand describes how much of a product buyers are willing and able to purchase. Individual tastes and preferences directly affect buyers’ desire for automobiles; worker availability, raw-material costs, and a company’s ability to respond are more directly related to production or supply.

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