Statement I: When the price of a good is increased,there is an implicit assumption that there is no change in any other factors that would affect quantity demanded.
Statement II: There are many other factors that influence demand other than price.

Question

Quizplus · Accepted Answer

Both statements are true. Statement I refers to the ceteris paribus assumption in economics, which holds other factors constant when analyzing the effect of price on quantity demanded. Statement II acknowledges the complexity of demand, recognizing that factors such as consumer preferences, income, and prices of related goods also influence demand.

Statement I: When the Price of a Good Is Increased,there