Comparative statics is the method of analysing:
A)the effect on a market equilibrium caused by a change in the model.
B)the difference between normative and positive questions.
C)the variables that cause market demand to change.
D)the determinants of individual preferences.

Question

Quizplus · Accepted Answer

Comparative statics involves changing one or more of the exogenous variables in a model and observing how the endogenous variables, such as market equilibrium, change as a result. Therefore, option A correctly describes the method of comparative statics. Options B-D do not accurately describe comparative statics.

Comparative Statics Is the Method of Analysing