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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Unit 3 Questions and Problems

Unit 3 Questions and Problems

Q What variables other than price and advertising are likely to affect the quantity demanded of a product?

Q Describe the probable shifts in the demand curves for:

Q If the price elasticity of demand for gasoline is 0.3 and the current price is $3.20 per gallon, what rise in the price of gasoline will reduce its consumption by 10 per- cent?

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1. What variables other than price and advertising are likely to affect the quantity demanded of a product? Solution: The quantity demanded of a product depends upon a lot of factors other than price they are: Income of the consumers, demographic structure of the population, taste and preference and future anticipation. These factors