What do economists mean when they say ceteris paribus?
What will be an ideal response?
When speaking about the laws of demand and supply, economists want to isolate changes in price from other changes, so they assume that key factors don't change when price goes up or down. When economists say that quantity demanded will decrease, for example, as price increases, they mean that this will happen if there are no other changes that could affect quantity demanded.
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An important reason why Ricardian equivalence may fail is if
A) borrowing and lending are done through intermediaries. B) government debt incurred today may not be paid off until after some current consumers are deceased. C) state and local governments also engage in debt finance. D) some consumers are borrowers, while other consumers are lenders.
Based on U.S. law that requiring organs to be donated, the supply curve for human organs currently is: a. elastic
b. perfectly inelastic. c. unit elastic. d. perfectly elastic.