Which of the following is not held constant when we use indifference-curve analysis to derive the Engel curve for good X?
A) The price of good X.
B) The price of good Y.
C) The consumer's income.
D) The consumer's tastes.

Question

Quizplus · Accepted Answer

In indifference-curve analysis, when deriving the Engel curve for good X, the consumer's income is not held constant. The Engel curve shows how the quantity demanded of good X changes as the consumer's income changes, while the prices of goods and the consumer's tastes are held constant.

Which of the Following Is Not Held Constant When We