Author Question: What are the five steps by which economists arrive at a useful economic model? What will be an ... (Read 60 times)

soccerdreamer_17 · **on:** Jun 29, 2018

What are the five steps by which economists arrive at a useful economic model?

What will be an ideal response?

Question 2

Refer to Figure 6-10. The supply curve on which price elasticity changes at every point is shown in

A) Panel A. B) Panel B. C) Panel C. D) Panel D.

dellikani2015 · **Reply #1 on:** Jun 29, 2018

Answer to Question 1

1. Decide on the assumptions to use in developing the model.
2. Formulate a testable hypothesis.
3. Use economic data to test the hypothesis.
4. Revise the model if it fails to explain the economic data well.
5. Retain the revised model to help answer similar economic questions in the future.

Answer to Question 2

D