In describing the relationship between X and Y, the ceteris paribus assumption implies that
A)the value of X does not change.
B)the value of Y does not change.
C)the values of both X and Y do not change.
D)all other factors that may affect X and Y are constant.
E)nothing in the world can change.

Question

Quizplus · Accepted Answer

The ceteris paribus assumption assumes that all other factors that may affect the relationship between X and Y are constant, meaning that there are no external variables affecting the relationship. Therefore, D is the best choice as it indicates that all other variables are held constant.

In Describing the Relationship Between X and Y, the Ceteris