Government policy does not make price a non-price factor in determining consumer's demand. Price plays an extremely important role in determining consumer's demand. For example, if the consumers know that the prices will go up after taxes are added on the products, then the consumers may choose to purchase less amount of products. In this case, the government did not increase the price but rather increased the taxes which resulted in reducing the quantity demanded. If there were no taxes at all, the consumers would still buy the same amount of goods but at lower prices. Thus, we see how price influences consumer's behavior.
