Which of the following is NOT held constant when constructing a demand schedule for coffee?

• A. Consumer income
• B. Consumer tastes and preferences
• C. The price of tea (a substitute)
• D. The price of coffee

Answer: (A)

Verified step by step guidance

1. Understand that a demand schedule shows the relationship between the price of a good and the quantity demanded, holding other factors constant.
2. Identify the 'ceteris paribus' assumption, which means 'all other things being equal'—this implies that factors other than the price of the good itself are held constant when constructing the demand schedule.
3. List the factors typically held constant: consumer income, consumer tastes and preferences, and prices of related goods (like substitutes or complements).
4. Recognize that the only variable allowed to change in a demand schedule is the price of the good itself (in this case, coffee).
5. Conclude that since the demand schedule varies the price of coffee, the price of coffee is NOT held constant, while consumer income, tastes, and the price of tea (a substitute) are held constant.