If an economist says "the higher the price of oranges,the fewer oranges individuals will buy,ceteris paribus," this means that
A) individuals don't like high-priced oranges.
B) as the price of oranges rises,individuals' preferences change and they no longer like oranges as much as they once did.
C) as the price of oranges rises,individuals' preferences do not change,nor does anything else,but individuals buy fewer oranges in response to the higher price of oranges.
D) the higher the price of oranges,the fewer oranges individuals will buy,assuming that people have economic motives.

Question

Quizplus · Accepted Answer

Ceteris paribus means that all other factors are held constant, so the economist is suggesting that the only factor influencing the quantity of oranges bought is the price. Therefore, as the price of oranges goes up, individuals will still have the same preference for oranges but will buy fewer of them because they cannot afford to buy as many at the higher price. The economist is assuming that individuals have rational economic motives and will respond to the price change in a predictable way.

If an Economist Says "The Higher the Price of Oranges,the