App store keeps asking for old owner's password when I try to download updates, even though I am logged into my Apple account. It won't allow me to change ID to mine.

I bought a used iMac recently, and sometimes the app store asks for the user password of the previous owner (and displays former owner's ID). It won't allow me to change ID to mine, even though I am signed into store with my own account (and this is shown in dropdown menu).  How can I make the store recognize my ID for downloads?

It is showing updates because your machine is tied to the original purchase and will remain so until you wipe the drive.
As you purchased it used and the seller obviously did not do what he was supposed to do and that is erase the hard drive and reinstall the original system, you will run in to far more difficult problems when you need to reinstall for whatever reason. The new licensing requirements are that any mac is sold with the original OS - any OS or app obtained at the app store is NOT transferable and the buyer needs to purchase their own license. That means you will not be able to reinstall the OS.
At some point, you will need to try to get either the original install disks (from the seller or Apple) and wipe your drive and reinstall. Then you can download your own licensed copy of Mavericks and any apps you want.

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