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irina [24]
3 years ago
10

why do economics often use the other things constant assumption when they develop econonmic theories?

Business
1 answer:
sineoko [7]3 years ago
3 0

The Latin word "Ceteris Paribus," often used in Economics simply means, with other things being the same or all things being equal.

The major reason why economics often use "Ceteris Paribus" is to eliminate other factors which might complicate an outcome.

For instance, If the price of pork increases, people will purchase less pork, that is Ceteris Parabus. In this instance, ceteris paribus means that the possibility of other factors affecting the sales of pork will not be considered. Other factors such as an announcement were made that pork causes cancer, or the price of Chicken has increased, thereby making pork the best alternative, hence, all these other factors will not be considered, therefore in this situation, economics only wants to consider what happens if the price of pork rises while keeping all other factors the same.

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Travelers who have no intention of showing up often fail to cancel their hotel reservations in a timely manner. These travelers
Svetlanka [38]

Answer:

No-shows in Hotel Reservations

Sample mean

= Sum of the samples divided by the number

= (18 + 16 + 16 + 16 + 14 + 18 + 16 + 18 + 14 + 19)/10 = 16.5

Explanation:

In mathematics and statistics, the arithmetic mean, or simply the mean or average is the sum of a collection of numbers divided by the count of numbers in the collection.

A sample mean therefore is the average of the sum of a collection of samples divided by the count of numbers in the collection.  Simply, the sample mean is the average of all the measurements in the sample.

6 0
3 years ago
You are an international shrimp trader. A food producer in the Czech Republic offers to pay you 2.2 million Czech koruna today i
fredd [130]

Answer: The value of this exchange is $8,816.05.

Explanation:

The problem is dealing with a simple case of arbitrage of exchange rates: Lets assume that

k = koruna

b = baht

Step 1:

Sales Revenue = k2,200,000

(To get USD amount : \frac{2,200,000}{25.36}=$86,750.7886

Purchase Cost = b3,200,000

(To get USD amount : \frac{3,200,000}{41.06}=$77,934.7297

Step 2:

Profit = Sales Revenue - Purchase cost

         = $86,750.7886 - $77,934.7297

         = $8,816.0589

The value of this exchange is $8,816.05.

4 0
4 years ago
)Investors in international finance are moving funds from Country X to other countries. This depreciation is causing even more d
monitta

Answer:

The supply for the currency will be bigger while the demand for the currency will be lower causing the currency value to depreciate.

Explanation:

As current foreign investors move fund out of country X, they will have to exchange their invested fund denominated in country X's currency to another currency which will result in higher supply of Country X's currency in the market.

Fewer foreign investors also means the demand for exchanging foreign's fund for Country X's currency to further expand investment or to start a brand-new investment will be lower because these investor will keep its fund denominating in the currency of their investment destination.

The affects on both supply and demand of country X's currency will cause further depreciation of the currency.

6 0
3 years ago
Which of the following is NOT a strong warning sign of potentially violent behavior?
miv72 [106K]
Do you have answers we can pick from?
4 0
4 years ago
What could be a good option available to you if you are
adelina 88 [10]

Answer:

A financial institution may offer for you to pay a little now and pay the rest after your next pay day.

Explanation:

Loan is the amount of money lent by a financial institution to it's customers with an agreement for repayment on specified dates. The repayment would include the principal amount and the interest element which represent the gain on the loan granted.

These financial institutions often engage in loan rescheduling; meaning that another agreement will be made with the borrower on how payment will be made if already lagging in payment as agreed. The aim of loan rescheduling is to make the loan payment easy for customers who are behind on loan payments.

It therefore means that the the best option available to a person who is behind on loan payment is that the financial institution might offer the person to pay a little amount now and pay the remaining amount the next pay day.

3 0
3 years ago
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