Question

Which formula correctly expresses the factors that determine the demand for a commodity?

Options

• Dx = f(Px, Pn, Y, T)

• Dx = f(Pn, Y)

• Dx = Px × Y

• Dx = Pn + T

Answer 1

Dx = f(Px, Pn, Y, T)

Explanation:

Demand for a commodity (Dx) is a function of its price, prices of related goods, consumer income, and taste.