Economists believe that people respond in a predictable way to changes in costs and benefits.The term that best describes this phenomenon is
A)opportunity cost
B)scarcity
C)innovation
D)marginal analysis
E)other things equal (or ceteris paribus)

Question

Quizplus · Accepted Answer

The phenomenon described in the question is known as marginal analysis, which is the examination of the additional benefits versus the additional costs of an economic choice. Economists believe that individuals often make decisions based on the perceived marginal benefits versus the marginal costs of a particular action or decision.

Economists Believe That People Respond in a Predictable Way to Changes