What happens when a relevant variable that is not named on either axis changes?
A) There will be a movement along the curve.
B) The curve may or may not change depending on how the variables are related.
C) The curve will be unaffected since only the variables on the axis affect the curve.
D) The curve will shift.

Question

Quizplus · Accepted Answer

When a relevant variable that is not named on either axis changes, it affects the conditions under which the curve was drawn, leading to a shift in the curve itself. This is because the curve is based on certain ceteris paribus (all else equal) conditions, and changing a relevant external variable alters these conditions.

What Happens When a Relevant Variable That Is Not Named