Which of the following can affect demand?

• A. Future expectations
• B. Price along curve
• C. Technology
• D. Input prices

Answer: (A)

Demand can be influenced by what people expect will happen in the future. If consumers anticipate higher prices or incomes later, they may buy more now, increasing current demand; if they expect prices to drop or incomes to fall, they might delay purchases, reducing current demand. The price along the curve describes how quantity demanded changes when the price itself changes, which is a movement along the demand curve rather than a shift in demand. Technology affects costs and production, which shifts the supply curve, not the demand curve. Input prices change production costs and thus the supply side as well, not directly the demand. So, future expectations are the factor that can affect demand.