If an Economist Finds That When Consumer Incomes Increase, Consumers

question 28

Multiple Choice

If an economist finds that when consumer incomes increase, consumers buy more cars, Ceteris paribus , then

• A) the price of cars must be decreasing.
• B) all other things remain constant.
• C) the price of gas must be decreasing.
• D) the interest rate on car loans must be decreasing.

---

Definitions:

Collectively Exhaustive

A condition in probability theory where a set of events covers all possible outcomes, ensuring that at least one of the mentioned events must occur.

Event A

A specified occurrence within a set framework, often observed within statistical and probability studies.

Event B

A specific outcome or a set of outcomes of a random experiment.

Balanced Die

A die that is perfectly symmetrical in shape and mass distribution, ensuring that each face has an equal chance of landing up when thrown.