Economists Use the Ceteris Paribus Assumption Primarily in Order to

question 127

Multiple Choice

Economists use the ceteris paribus assumption primarily in order to

• A) make their analyses easier for them to conduct.
• B) designate what they believe is the correct relationship between two variables.
• C) explain why people sometimes consume more of a good when its price rises.
• D) explain why those things that come first do not necessarily cause those things that come later.
• E) designate the difference between normative and positive economics.

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Definitions:

Consumer Income

The total amount of income available to an individual or household for spending, saving, or investment after taxes.

Availability

The degree to which a product or service can be purchased or accessed by consumers at a given time.

Consumer Tastes

Preferences and likings of consumers that influence their purchasing decisions and are shaped by cultural, social, and individual factors.

Close Substitutes

Products or services that can easily replace each other in the eyes of the consumer due to their similarities in function or utility.