Suppose an economist says "Ceteris paribus,the lower the price of the breakfast cereal,Wheaties,the larger the amount of Wheaties purchased." This statement indicates that:
A) the quantity of Wheaties purchased determines the price of Wheaties
B) all factors other than the price of Wheaties (for example, consumer preferences and incomes) are assumed to be constant
C) economists can conduct controlled laboratory experiments
D) one cannot generalize about the relationship between the price of Wheaties and quantity purchased
E) the price and quantity demanded of Wheaties are directly related
Correct Answer:
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