Hi, i encounter this qns where i dk which of this three is the
answer.
The question is about which of the following option is not held
constant in defining demand.
1) Price of related goods.
2) Tastes
3) Number of consumer
I think option 1 isnt the answer since it does define demand
where a drop in price of certain product does increase the demand
of the complementary goods and itself as well as a rise in certain
product does increase the demand for the substitue goods.
As for option 2, since a person might e.g. prefer coke over
pepsi (their taste), there will be a higher demand for coke.
As for option 3, the number of consumer also affect demand since
more people means there will be a higher demand for the
product.
Im confuse between option 2&3...
Here is why im confuse.. For Option 3, with high purchasing
power and strong interest in certain product, the demand for it
will increase ( a person can buy more than just 1 of the same
product), thus even with a small group of consumer, the demand for
it can be high as well? Since it doesnt have to mean that only with
more people then can there be demand for it, thus it is not held
constant...? (Its kinda weird) But like what i stated above, numb
of consumer affects demand too since more consumer means more
demand...
As for option 2.... a person can like certain product more over
the other product, but it does not always define demand since like
for example coke, a person might just LIKE it only but there isnt
any demand for it at the moment?
Yeah.. thats what making me so confuse :X Pardon my weird
explanation and understanding of the qns. >.<