Consider the market for pita bread.All else equal, when tastes change such that more people like eating pita bread, we'd expect to seein this market [Select]in equilibrium price and[Select]in equilibrium quantity. You want to make a model showing how people decide to decorate their houses and lawns. Youassume that homeowners follow the art idea of the "Golden Ratio" to decide where one item shouldbe in relation to another. In reality, the homeowners have never heard of the "Golden Ratio," but thepredictions made by your model are still very close to how things end up decorated.An economist would say your modelO is not ideal due to the lack of realismO is effective as long as the homeowners learn to use the Golden Ratio in decorating as a result of your studyis effective because economics focuses on predictions from models, not the assumptions used to create themO is not ideal because it does not look sufficiently like the real world

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Consider the market for pita bread. All else equal, when tastes change such that more people like eating pita bread, we'd expect to see in this market [Select] [Select] V in equilibrium price and in equilibrium quantity.

Consider the market for pita bread. All else equal, when tastes change such that more people like eating pita bread, we'd expect to see in this market [Select] [Select] V in equilibrium price and in equilibrium quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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