Which of the following is a determinant of demand?

Consumer income is a critical determinant of demand because it directly influences consumers’ purchasing power. When consumer income increases, individuals have more money to spend, which typically leads to an increase in the quantity of goods and services demanded. Conversely, when consumer income decreases, people may have less money available to purchase the same quantity of goods, resulting in a decline in demand.

Understanding that consumer income affects demand helps to illustrate the relationship between economic conditions and consumer behavior. For example, during times of economic growth, higher disposable income can lead to increased spending on non-essential goods and services. In contrast, during a recession, the opposite effect can occur, where demand for luxury items may significantly drop.

The other options relate to the supply side of the market rather than demand. Cost of inputs and technological advances typically affect supply, as they can influence production costs and efficiency. Producer expectations may also affect decisions to produce and invest, impacting supply rather than the quantity demanded directly.