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3. Supply and Demand
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Problem 15
3. Supply and Demand
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3. Supply and Demand / Shifting Demand / Problem 5
Problem 5
Why is the ceteris paribus assumption important when analyzing the effect of a single determinant on demand?
A
It isolates the effect of one variable by holding others constant.
B
It assumes that price is the only variable that can change.
C
It allows all variables to change simultaneously.
D
It assumes that only consumer preferences can change.
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