The term Ceteris paribus means that:
A) the model includes all important variables occurring in the real world.
B) all factors which influence the event are changing at the same time.
C) one influence is changing and everything else is being held constant.
D) the consumer is king.

Question

Quizplus · Accepted Answer

Ceteris paribus means "all other things being equal" or "holding everything else constant". Therefore, it refers to a situation in which everything except for one specific factor is held constant or unchanged. This allows economists to isolate the effect of that one factor on the outcome being studied.

The Term Ceteris Paribus Means That