When economists use the term Ceteris paribus , they are indicating that:
A) the relationship between two economic variables cannot be determined.
B) the analysis is true for the individual but not for the economy as a whole.
C) all other variables except the ones specified are assumed to be constant.
D) their conclusions are based on normative economics rather than positive economic analysis.

Question

Quizplus · Accepted Answer

Ceteris paribus means holding all other variables constant. This allows economists to isolate the relationship between two specific variables and analyze their impact on each other without interference from other variables.

When Economists Use the Term Ceteris Paribus , They Are