Asked by Faith DeNoyer on Jul 10, 2024
Verified
If we are considering the relationship between two variables and release one of the other-things-equal assumptions,we would expect:
A) the relationship to change from direct to inverse.
B) the line representing that relationship on a graph to shift.
C) the data points to have a tighter fit to the line representing the relationship.
D) the relationship to change from inverse to direct.
Other-things-equal Assumptions
A principle in economics which suggests that the effect of one economic variable on another can be determined by holding all other influencing factors constant, commonly referred to as ceteris paribus.
- Learn to decipher and formulate equations and graphs when given specific data sets.
Verified Answer
SM
Spiro MaglarisJul 14, 2024
Final Answer :
B
Explanation :
If we release one of the other-things-equal assumptions, it means that something else besides the two variables being considered is now affecting one or both of them. This could cause the line representing their relationship on a graph to shift.
Learning Objectives
- Learn to decipher and formulate equations and graphs when given specific data sets.