Multiple Choice
If all prices fall and it is observed that Betty purchases more bananas, which of thefollowing statements can be made?
A) Betty purchases more bananas as the price of bananas falls, ceteris paribus.
B) Betty purchases more of all goods as their prices fall, ceteris paribus.
C) Betty prefers bananas to all other fruits, ceteris paribus.
D) There is no ceteris paribus condition in this statement.
E) Betty will always buy more bananas when all prices fall, ceteris paribus.
Correct Answer:
Verified
Correct Answer:
Verified
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