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An economist is developing a model to predict how a 5% increase in the price of wheat will affect the quantity of bread supplied by bakeries. To isolate the impact of the wheat price change, the economist must assume that other factors, such as the cost of labor, electricity prices, and oven technology, remain unchanged. This analytical technique of holding other variables constant is known as the ____ assumption.
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An economist is developing a model to predict how a 5% increase in the price of wheat will affect the quantity of bread supplied by bakeries. To isolate the impact of the wheat price change, the economist must assume that other factors, such as the cost of labor, electricity prices, and oven technology, remain unchanged. This analytical technique of holding other variables constant is known as the ____ assumption.
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