a priori

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a priori

adj. known to be true, independently of the subject under debate. Economists frequently develop their theoretical models by reasoning, deductively, from certain prior assumptions to general predictions.

For example, operating on the assumption that consumers behave rationally in seeking to maximize their utility from a limited income, economists’ reasoning leads them to the prediction that consumers will tend to buy more of those products whose relative price has fallen. See ECONOMIC MAN, CONSUMER EQUILIBRIUM

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