The law of demand includes the statement "other things being equal." These other things include all of the following EXCEPT
A) the price of that good in the law of demand.
B) consumers' income.
C) consumers' tastes and preferences.
D) the number of potential buyers.

Question

Quizplus · Accepted Answer

The law of demand states that, ceteris paribus (all other things being equal), as the price of a good decreases, the quantity demanded increases, and vice versa. It assumes that factors such as consumers' income, tastes and preferences, and the number of potential buyers remain constant. The price of the good in question is the variable that changes to observe the effect on demand, not one of the "other things" assumed to be constant.

The Law of Demand Includes the Statement "Other Things Being