Which of the following could possibly change a rational consumer’s demand? a. Changing his utility function by cubing it b. Changing his utility function by multiplying it by 3 and subtracting 100 from it c. Increasing all prices and his income by $3 d. Multiplying all prices and income by 2.2 e. More than one of the above

c. Increasing all prices and his income by $3

Explanation:

In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.

The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.

According to the law of demand, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.

This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.

This ultimately implies that, increasing all prices and the income of a rational consumer by $3 could possibly change his demand.

A rational buying motive is typically based on the consumer's logical and economical consideration of a product in terms of price, durability, need, quality, etc. Thus, it involves a careful consideration of a product rather than feelings as in emotional buying motive.

the answer is d

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