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

question 210

Multiple Choice

The "other things being equal" clause in the law of demand does not allow which of the following factors to change?

• A) Consumer income.
• B) The prices of other goods.
• C) Consumer tastes and preferences.
• D) All of the above.

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Definitions:

Excise Taxes

Taxes levied on the sale of specific goods and services, often included in the price of products like gasoline, alcohol, and tobacco.

Cigarettes

Small cylinders of finely cut tobacco leaves rolled in thin paper for smoking.

Tobacco Farming

The agricultural process of growing and harvesting tobacco leaves, which are then processed for use in products like cigarettes.

Perfectly Inelastic

A situation where the quantity demanded or supplied does not change in response to a change in price.