The statement "other things being equal" in the law of demand means all of the following remain constant EXCEPT
A) consumer income.
B) the price of the good concerned in the law of demand.
C) the prices of substitutes.
D) tastes and preferences.

Question

Quizplus · Accepted Answer

The phrase "other things being equal" in the context of the law of demand implies that all factors except the price of the good in question (such as consumer income, the prices of substitutes, and tastes and preferences) are held constant. The law of demand focuses on how changes in the price of a good affect its demand, assuming other factors do not change.

The Statement "Other Things Being Equal" in the Law of Demand