A demand curve is an accurate tool for predicting the decisions of consumers as long as price and all other factors remain the same. This is known as the ceteris paribus assumption, which means "all other things being equal." It allows economists to isolate the relationship between the price of a good and the quantity demanded, without the influence of other variables.
A demand curve is an accurate tool for predicting the decisions of consumers as long as what condition exists?
There are no changes other than price that could affect consumers.
There are no changes other than income that could affect consumers.
none of the above
Price and all other factors remain the same.
1 answer