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Economics > Theme 1 Micro economics > Flashcards

Theme 1 Micro economics Flashcards

1
Q

What is ceteris paribus

A

Ceteris Paribus refers to all other things being equal

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2
Q

What is Ceteris Paribus used for

A

For economist to simplify their assumtions, Its devised to isolate certain variables while keeping other relavant factors constant

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3
Q

1 Example of the assumtion of ceteris paribus

A

Law of Demand : Things being equal, thus when the price for a good/service decreses the quantity demanded increses.

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4
Q

2 Assumtion of ceteris paribus

A

Supply and Price: Assumes otherfactors affecting supply like production costs are held constant, Assumes that things effecting supply are constantly affecting it.

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5
Q

How does Supply and Price help economists?

A

It allows them to examine how changes in price directly impacts the quantiy producers are willing to supply.

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6
Q

3 Example of ceteris paribus assumtion

A

Marginal Utility:

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Economics (2 decks)

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