The use of the phrase “other things constant” in supply and demand analysis indicates that:
A. an equilibrium price has been reached.
B. an equilibrium quantity has been reached.
C. we are considering changes in just one factor.
D. we are considering all the changes which might take place in actual markets.
Answer:C
The use of the phrase “other things constant” in supply and demand analysis indicates that:
A. an equilibrium price has been reached. B. an equilibrium quantity has been reached. C. we are considering changes in just one factor. D. we are considering all the changes which might take place in actual markets.
Explanation: Other things constant means that all other factors that could affect the analysis remain constant whether they actually do or not. It does not indicate when equilibrium has been reached.