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Suppose Lorna Will Buy More Sweaters If the Price of Sweaters

question 73

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Suppose Lorna will buy more sweaters if the price of sweaters rises.She is violating the


Definitions:

Ceteris Paribus Assumption

A Latin phrase meaning "all other things being equal", used in economics to isolate the effect of one variable change by holding other relevant factors constant.

Other-Things-Constant Assumption

An assumption in economics that all other variables remain unchanged or constant except those under immediate consideration.

Rational

A decision-making process that is based on making choices that result in the optimal level of benefit or utility for an individual.

Expected Additional Benefit

The anticipated extra advantage or income gained from making a particular business decision or investment.

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