The ceteris paribus assumption is important to use when building economic models

Teddy buys only chocolate chip cookies and hot chocolate and spends all of his income on the two items. Suppose the price of a cookie rises. According to marginal utility theory, Teddy buys

A) more cookies. B) fewer cookies. C) more hot chocolate. D) an equal amount of cookies and hot chocolate.

Economists have used ________ and ________ in experiments designed to determine whether consumers care about fairness when they make decisions

A) the income effect; the substitution effect B) Giffen goods; luxury goods C) network externalities; the endowment effect D) the ultimatum game; the dictator game