Ceteris paribus, by changing the price of one product and observing how consumers reallocate spending, we can construct

Question

Quizplus · Accepted Answer

By changing the price of one product and observing how consumers reallocate spending, we can construct the demand curve for that product. This is because the demand curve shows the relationship between the price of a product and the quantity of the product that consumers are willing and able to purchase at various prices, ceteris paribus (all other factors being held constant).

Ceteris Paribus, by Changing the Price of One Product and Observing