Question

An equilibrium price is unaffected by non-price factors.
a. True
b. False

Solution

Verified
Answered 5 months ago
Answered 5 months ago
Step 1
1 of 2

Before we solve this exercise, it's important to understand the concept of non-price factors.

Non-price factors are often represented as conditions that affect the market even if they don't have a price value.

Such conditions are:

  • population (number of consumers)
  • preferences
  • purchasing power
  • other complementaries and substitutes
  • expected price/inflation

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

Create an account to view solutions

By signing up, you accept Quizlet's Terms of Service and Privacy Policy
Continue with GoogleContinue with Facebook

More related questions