The statement, "John buys more of good X as his income increases, ceteris paribus," means
A) John's income is being held constant.
B) John's purchases of good X are being held constant.
C) John's income and purchases of this good are being held constant.
D) John's income is the only influence that is being allowed to change.
E) the price of this good is being allowed to change.

Question

Quizplus · Accepted Answer

"Ceteris paribus" means all other factors are held constant except for the one being studied, which in this case is John's income.

The Statement, "John Buys More of Good X as His