Question

Which of the following would be considered nonprice determinants of the demand for flour?

1) A change in the number of buyers of flour
2) A change in sellers' expectation of the price of flour next week
3) A change in buyers' expectation of the price of flour next week
4) A change in the wages of farm workers, an input into the production of flour
5) A change in consumer preferences to bake

Answer 1

Nonprice determinants of the demand for flour include a change in the number of buyers, buyers' price expectations, and consumer baking preferences.

The nonprice determinants of demand for flour include:

1. A change in the number of buyers of flour: If the number of buyers increases, the demand for flour will likely increase as well.
2. A change in buyers' expectation of the price of flour next week: If buyers expect the price of flour to increase in the future, they may demand more flour now to stock up.
3. A change in consumer preferences to bake: If there is a shift in consumer preferences, such as an increase in the popularity of baking, the demand for flour would increase.