When economists explain the relationship between the price of hotdogs and the number that consumers will buy, the ceteris paribus assumption implies that
A)the price of hotdogs is constant.
B)the quantity of hotdogs purchased is constant.
C)both the price and quantity of hotdogs purchased are constant.
D)factors other than the price and quantity of hotdogs purchased are constant.
E)everything in the world does not change.

Question

Quizplus · Accepted Answer

The ceteris paribus assumption means that all other factors that could affect the demand for hotdogs are held constant. Therefore, the only thing that is allowed to change is the price of hotdogs and the number of hotdogs consumers will buy at that price. All other factors, such as the price of other goods, income levels, tastes and preferences, etc., are assumed to be constant.

When Economists Explain the Relationship Between the Price of Hotdogs