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The 'Other Things Equal' Assumption in Market Analysis
Explain the importance of the 'other things equal' assumption when analyzing the relationship between two economic variables. To illustrate your explanation, consider the market for gasoline. If an economist wants to isolate the effect of a change in the price of gasoline on the quantity consumers are willing to buy, what are at least three other relevant factors that must be assumed to remain constant? For each factor you list, briefly explain why a change in it would also affect consumers' purchasing decisions.
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Introduction to Microeconomics Course
The Economy 2.0 Microeconomics @ CORE Econ
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