LO:
a) Thinking like an economist: the process of developing models in economics, including the need to make assumptions
b) The use of ceteris paribus assumption in building models
c) the inability in economics to make scientific experiments
a) Thinking like an economist: the process of developing models in economics, including the need to make assumptions
b) The use of ceteris paribus assumption in building models
c) the inability in economics to make scientific experiments
b) The use of ceteris paribus assumption in building models
Ceteris paribus = Latin for – ‘all things being equal’ Therefore: if the price of a good goes up and ceteris paribus (everything else stays the same) the demand for the good will stay the same |
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