What is meant by holding all else equal? How is this concept used when discussing movements along the demand curve? How is this concept used when discussing movements along the supply curve?
What will be an ideal response?
Holding all else equal means that everything other than the variable in question is assumed to remain constant. When we move along a demand curve we are assuming that all of the determinants of the demand for a good other than the price of the good (e.g., income, the prices of other goods) remain constant. When we move along a supply curve we are assuming that all of the determinants of the supply of a good other than the price of the good (e.g., wage rates, the price of raw material, technology) remain constant.
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As Americans have become more health conscious, rules about food labels have become more complex and stringent. This is an example of government acting as
A. referee. B. redistributor. C. taxer. D. defender.
If price discrimination enables sellers to increase net revenues, why don't all sellers try it? Because
A) some sellers can't manipulate their price. B) some sellers can't control resentment. C) some sellers can't prevent low-price buyers reselling to high-price buyers. D) of all the above reasons.
When the Fed sells government securities to a bank, how are the Fed's assets affected?
A) The amount of the Fed's government securities decreases. B) The amount of the Fed's government securities increases. C) The amount of reserves held at the Fed increases. D) The amount of reserves held at the Fed decreases.
What is a normal profit?
What will be an ideal response?