question_answer

Latest techniques and innovative products affect the tastes and preferences of a consumer. A housewife prefers microwave ovens instead of burners or chulah. What is the impact of tastes and preferences on demand for a commodity?

Answer:

Demand of a consumer is affected by his/her tastes and preferences. The consumer's taste and perferences are influenced by advertisement, change in fashion, climate, new inventions etc. Other things being equal, demand for those goods increases for which consumers develop favourable tastes   and   preferences   are vice-versa. So, a housewife prefers microwave ovens over burners or chulah because it is a latest invention and it helps to reduce her burden.