Ceteris paribus means:
A) Nothing is allowed to change.
B) The determinants of demand may change,but all else must be held constant.
C) Only one determinant is being changed while all others remain unchanged.
D) Consumers try to keep all things constant so that prices will be lower.

Question

Quizplus · Accepted Answer

Ceteris paribus is a Latin phrase meaning "all other things being equal." It is used in economics to isolate the effect of one variable by holding other relevant factors constant. This approach allows for the examination of the impact of a single change, such as a change in price, on a dependent variable, like quantity demanded, without the interference of other variables changing at the same time.

Ceteris Paribus Means