microecons~

Bluepop SG

Hi, sorry about my previous post which is sort of unable to understand. I got this qns asking about which of the following is not held constant in defining demand?

1) income

2) prices of relatd goods

3) tastes

4) price of the good in question

5) number of consumers

the answer is 4. But why 4 and not others? What is meaning of not held constant in the question?

Lyqht SG

You know the defn for demand is the quantity that consumers are willing and able to buy at every unit price, ceteris paribus right?

CP = all others factors a.k.a your options 1,2,3,5 are held constant.

Hence only price of the good in question changes to affect demand of good, and ans is 4.