Demand curves are derived while holding constant ?
Correct answer: A. incomes, tastes, and the price of other goods.
- A. incomes, tastes, and the price of other goods.
- B. income, tastes, and the price of the good.
- C. income and tastes
- D. tastes and the price of other goods
Explanation
A demand curve isolates the effect of the good's own price, so income, tastes, and prices of other goods are held constant. The good's own price must vary along the curve rather than be held fixed.
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Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
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