An important assumption made when constructing a demand curve is that
A)only price and quantity matter in determining the demand for a good.
B)people always want a certain amount of the good.
C)demand is always dependent on the supply of a good.
D)all other determinants of demand are held constant.
E)the demand curve has a positive slope.

Question

Quizplus · Accepted Answer

Constructing a demand curve requires holding all other determinants of demand constant, such as income, preferences, prices of related goods, and expectations. This assumption allows us to isolate the relationship between price and quantity demanded. Choices A, B, C, and E do not accurately describe this assumption.

An Important Assumption Made When Constructing a Demand Curve Is