Economists use the term ceteris paribus to indicate that
A) supply and demand are in balance.
B) other things are assumed to be constant.
C) the analysis is true for the individual but not for the economy as a whole.
D) their conclusions are based on normative economics rather than positive economic analysis.

Question

Quizplus · Accepted Answer

Ceteris paribus is a Latin phrase meaning "all other things being equal," used by economists to isolate the effect of one variable by holding other relevant factors constant.

Economists Use the Term Ceteris Paribus to Indicate That