Which of the following should be held constant when calculating an income elasticity of demand?
A)the price of the good
B)prices of related goods
C)tastes
D)All of the above should be held constant.

Question

Quizplus · Accepted Answer

When calculating income elasticity of demand, all factors that can affect demand must be held constant to determine the change in demand solely based on income. Therefore, the price of the good, prices of related goods, and tastes should all be held constant.

Which of the Following Should Be Held Constant When Calculating