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) .

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Traore Amadou · Accepted Answer

Final Answer : D, Explanation :  The phenomenon described is known as the law of demand, which is based on the principle of marginal analysis. Marginal analysis is the process of analyzing the additional benefits and costs of a decision in order to determine whether to pursue it or not. This principle is used by economists to explain many economic phenomena, including consumer behavior and producer behavior.

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) .

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Learning Objectives

Related questions

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) .

Definitions

Learning Objectives

Learning Objectives

Related questions

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) .