Which of the following is a common determinant of both supply and demand?
A)income
B)future expectations
C)tastes and preferences
D)sales tax

Question

Quizplus · Accepted Answer

Future expectations can affect both supply and demand. For example, if consumers expect a product to be in high demand in the future, they may increase their current demand, leading to an increase in supply to meet that demand. On the other hand, if producers expect a decrease in demand in the future, they may reduce their current supply, leading to a decrease in demand. Income affects demand but not supply, and tastes and preferences affect demand but not necessarily supply. Sales tax affects the price of a good, but not the actual supply or demand.

Which of the Following Is a Common Determinant of Both