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In the law of demand, the statement “Other things remain constant” means
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- income of consumer should not change
- price of other goods should not change
- taste of consumer should not change
- All of the above
- income of consumer should not change
Correct Option: D
In economics, the law of demand is an economic law, which states that consumers buy more of a good when its price is lower and less when its price is higher (ceteris paribus). The Law of demand states that the quantity demanded and the price of a commodity are inversely related, other things remaining constant. That is, if the income of the consumer, prices of the related goods, and preferences of the consumer remain unchanged, then the change in quantity of good demanded by the consumer will be negatively correlated to the change in the price of the good.
