Question

consider the following comment: "It's easy to see why the bagel store is doing well; it's an attractive place, its prices are competitive, it doesn't have much competition, and there's a new office building nearby".

a) How many demand factors are cited here to explain the store's success?

b) Which one(s) would economists want to hold constant? Which one(s) would they vary in order to determine the quantities of bagels the store could sell?

Answer 1

a) 4 demand factors are cited here to explain the store's success.

b) The total number of buyers, the level of competition and prices of competitors economists would want to hold constant, but they would vary own prices in order to determine the quantities of bagels the store could sell.