Taylor is analyzing the effects of wage rates on the supply of laptop computers. by using the ceteris paribus assumption, taylor is?

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04-08-2022
Business

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Taylor is analyzing the effects of wage rates on the supply of laptop computers. by using the ceteris paribus assumption, taylor is?

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aamirmajeed5100 aamirmajeed5100 · Answer 1 · 2022-08-09T17:12:56-04:00

• Holding wage rates constant

In the Ceteris Paribus assumption, influencing factors are kept constant while the rest of all the factors are set equal so in this above statement wage rate is the influencing factor so this factor will be constant

For example:

As we know that with an increase in wage rate supply of laptop computers will increase or will change before then therefore the change in wage rate is directly influencing the supply of laptops.

While all other retail and supply-demand factors are kept constant. So as we know that according to the Ceteris assumption:

If coke's price will increase its demand will be reduced and the price is an influencing factor that in that condition it should be set to be stable or constant.

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