The other-things-constant assumption
A)allows the economist to make useful predictions
B)is a prediction
C)applies only to consumers' decisions, not to those of firms
D)forces the economist to ignore reality, where things are constantly changing
E)implies rational self-interest on the part of all economic actors

Question

Quizplus · Accepted Answer

The other-things-constant assumption allows the economist to isolate the effects of a particular variable on a given outcome, which in turn enables the economist to make useful predictions about the behavior of economic actors.

The Other-Things-Constant Assumption