Tutor profile: Michael K.

Evaluate the following expression: (3-2)x(5+3)-2

The expression evaluates to 6. The order of operations instruct us to evaluate what is inside parentheses first, so the expression can be written as 1 x 8 -2. Then we evaluate exponents (which there are none here), then multiplication and division, so the expression can be again re-written as 8-2. Then we evaluate addition and subtraction, so we get 8-2 = 6.

Why do economists often use Latin term ceteris paribus?

Ceteris paribus is a Latin term that is often translated to mean "all else equal" or "all else the same". It us used in economics to think about situations where one thing changes (input costs or consumer preferences, for example) and nothing else changes. It is important to be able to think about things in this way because the real world is complex and often many things are changing at the same time making it difficult to examine the effect of a single change in isolation.

What would you expect to happen to prices in the market for computers if the price of microprocessors declines (and nothing else happens)?

Microprocessors are and input to the production of computers, so if the cost of inputs falls, we would expect the supply to rise and prices of computers to fall.