An important assumption that is made when constructing a demand schedule is that
A) only price and quantity matter in determining demand.
B) people always want a certain amount of a product.
C) demand is too important to be left to the economists.
D) all other determinants of demand are held constant.
E) demand has a positive slope.

Question

Quizplus · Accepted Answer

When constructing a demand schedule, it is assumed that all other determinants of demand, such as consumer preferences, income, and prices of related goods, are held constant to isolate the effect of price on quantity demanded.

An Important Assumption That Is Made When Constructing a Demand